Horn Tops

As of 09/25/2020

Indus: 27,174 +358.52 +1.3%

Trans: 11,270 +152.52 +1.4%

Utils: 808 +12.20 +1.5%

Nasdaq: 10,914 +241.29 +2.3%

S&P 500: 3,298 +51.87 +1.6%

YTD

-4.8%

+3.4%

-8.1%

+21.6%

+2.1%

Targets Overview: 09/14/2020

28,650 or 26,000 by 10/15/2020

11,750 or 10,600 by 10/01/2020

845 or 775 by 10/01/2020

11,800 or 10,400 by 10/01/2020

3,600 or 3,200 by 10/01/2020

CPI (updated daily): Arrows

on 8/18/20

As of 09/25/2020

Indus: 27,174 +358.52 +1.3%

Trans: 11,270 +152.52 +1.4%

Utils: 808 +12.20 +1.5%

Nasdaq: 10,914 +241.29 +2.3%

S&P 500: 3,298 +51.87 +1.6%

YTD

-4.8%

+3.4%

-8.1%

+21.6%

+2.1%

Targets Overview: 09/14/2020

28,650 or 26,000 by 10/15/2020

11,750 or 10,600 by 10/01/2020

845 or 775 by 10/01/2020

11,800 or 10,400 by 10/01/2020

3,600 or 3,200 by 10/01/2020

CPI (updated daily): Arrows

on 8/18/20

Bulkowski on Horn Tops

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

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. The statistics in this article were from the weekly scale.

Horn Tops: Important Bull Market Results

Overall performance rank: 1 (best) out of 2 (weekly scale)

Break even failure rate: 9%

Average decline: 19%

Percentage meeting price target: 54%

The above numbers are based on 843 perfect trades on the weekly scale. See the glossary for definitions.

Horn Tops: Identification Guidelines

Characteristic	Discussion
Weekly chart	Use the weekly chart to locate horns.
Price trend	Upward leading to the pattern.
Shape	Looks like a steer's horn, two parallel price spikes separated by a week.
Spikes	The spikes should be longer than most in the past year, but be flexible.
Confirmation	The pattern confirms as valid when price closes below the lowest price in the 3-week pattern.

Horn Tops: Trading Tips

Trading Tactic	Explanation	The Measure Rule
Measure rule	See 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).
Downtrends	If the horn appears near the end of a downtrend, then avoid it.
Confirmation	Wait for confirmation before placing a trade.
Trend change	A horn top usually signals a trend change within 2 months.
Pullbacks	Pullbacks hurt performance.

Horn Tops: 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.