Thomas N. Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with almost 30 years of stock market experience and widely regarded as a leading expert on chart patterns. His four books, including the best selling Encyclopedia of Chart Patterns, have been translated into six languages. He may be reached at

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Bulkowski’s Scoring for Head-and-Shoulders Tops

Market

Industrials (^DJI):

Transports (^DJT):

Utilities (^DJU):

Nasdaq (^IXIC):

S&P 500 (^GSPC):

As of 03/11/2010

10,611.84 44.51 0.4%

4,320.38 24.66 0.6%

378.79 1.34 0.4%

2,368.46 9.51 0.4%

1,150.24 4.63 0.4%

YTD

1.8%

5.4%

-4.8%

4.4%

3.2%

Tom’s Targets

10,700 by 04/01/2010

4,350 by 04/01/2010

380 by 03/15/2010

2,450 by 04/01/2010

1,200 by 04/01/2010

Mkt Overview: 03/05/2010

Test Portfolios and CPI

Indus. strength: 10.4%

Mutt Losers: None YTD

Mutt Winners: 4.9%

Wilder RSI: 9.3%

CPI: on 02/09/2010

My book, Trading Classic Chart Patterns, pictured on the right, has additional details on this scoring system.

This page scores head-and-shoulders tops chart patterns. Patterns with scores above 0 show declines averaging 25%. Scores below 0 show declines of 16%. High scores do not guarantee good performance, nor does a low score mean you found a stinker.

Scoring

Please provide the following information:

What is the highest price in the chart pattern?

What is the lowest price in the chart pattern?

What is the highest price for the stock over the last 52 weeks?

What is the lowest price for the stock over the last 52 weeks?

How many shares of stock are outstanding?

What is the (anticipated) breakout price (use neckline pierce price or right armpit low)?

Trend start: How long is the price trend leading to the start of the chart pattern?
0-3 months 3-6 months Over 6 months

Horizontal consolidation region: Is underlying support in the way of price movement?
Yes No

Neckline slope: In what direction does the neckline slope?
Up Horizontal Down

Shoulders: Which shoulder peak is higher?
Left Right The shoulder lows are even

Volume trend: Is volume trending up or down in the chart pattern?
Up Down

Pullbacks: Do you think a pullback will occur (usually answer Yes)?
Yes No

Enter Symbol

This loads yahoo!finance then use the Key Statistics link to find the 52-week high, low, and shares outstanding.

Bulkowski’s Scoring for Head-and-Shoulders Tops

Scoring

See Also