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Bulkowski's Horn Tops

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As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019
As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

Updated on 11/28/2018.

For more information on this pattern, read Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., pictured on the right, pages 115 to 131.

If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. -- Tom Bulkowski

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Horn tops are H-shaped chart patterns that perform best when found on the weekly charts. The performance is good, especially in a bear market. Discovered by Thomas Bulkowski in 1998.

Horn top chart pattern
Horn Top Chart Pattern

 

Important Bull Market Results for Horn Tops

Overall performance rank (1 is best):not ranked
Break even failure rate: 9%
Average decline: 19%
Pullback rate: 28%
Percentage meeting price target: 54%

The above numbers are based on 834 perfect trades. See the glossary for definitions.

Horn Top Identification Guidelines

CharacteristicDiscussion
Weekly chartUse the weekly chart to locate horns.
Price trendUpward leading to the pattern.
ShapeLooks like a steer's horn, two parallel price spikes separated by a week.
SpikesThe spikes should be longer than most in the past year, but be flexible.
ConfirmationThe pattern confirms as valid when price closes below the lowest price in the 3-week pattern.
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Horn Top Trading Tips

Trading TacticExplanation
Measure ruleSee the Measure Rule figure to the right. Compute the height between the highest high (A) and lowest low (B) in the 3-week pattern and then multiply it by the above “percentage meeting price target.” Subtract the result from the lowest low (B) in the pattern to get a price target (C).
DowntrendsIf the horn appears near the end of a downtrend, then avoid it.
ConfirmationWait for confirmation before placing a trade.
Trend changeA horn top usually signals a trend change within 2 months.
PullbacksPullbacks hurt performance.
Horn top chart pattern measure rule
The Measure Rule

Horn Top Example

Horn top chart pattern example

The above figure shows an example of a horn top chart pattern. The two spikes tower above the surrounding price landscape, the trend to the chart pattern is upward and long, and price confirms the horn top when it closes below the lowest low in the 3-week pattern. Shown on the weekly scale.

-- Thomas Bulkowski

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See Also

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. The name is Baud...James Baud.