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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 Trading Setups

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As of 09/02/2010
10,320.10 50.63 0.5%
4,342.03 58.62 1.4%
396.87 -0.49 -0.1%
2,200.01 23.17 1.1%
1,090.10 9.81 0.9%
 
YTD
-1.0%
5.9%
-0.3%
-3.0%
-2.2%
 
10,475 by 09/15/2010
4,450 by 09/15/2010
400 by 09/15/2010
2,250 by 09/15/2010
1,100 by 09/15/2010
Mkt Overview: 08/29/2010

CPI: on 08/27/2010

Written by and copyright © 2005-2010 by Thomas N. Bulkowski. All rights reserved.

This page shows trading setups for stock and options traders. Look them over and make whatever changes you feel are necessary to get the setup to work for your trading style.

 

Latest Releases

    Option Setups

    When trading options the focus should be on puts, not calls. Why? Because price drops faster than it rises. For example, on page 756 of my book, Encyclopedia of Chart Patterns, Second Edition (the green book pictured on the bottom left), Table 49.2 for symmetrical triangles says that it took price 124 days to climb an average of 31% after the breakout, but it took price 45 days to drop 17%, both in a bull market. The drop is over twice as fast as the rise. And this is not an isolated example.

  1. Busted pattern. After the breakout reverses, trade the new direction.
  2. Covered calls. Boost your returns with covered calls.
  3. Double top. Method helps predict the time to exit.
  4. Chart pattern pullback. Trade the breakout for a swift drop then jump in again later.
  5. Stock Setups

  6. Adam White setup. This setup is good for trading ETFs, and it has a unique dual exit strategy.
  7. Ascending triangle trading setup. 23 tests show how difficult it can be to make money trading these.
  8. Borst setup. Learn to use yahoo!finance to pick biotechnology stocks for huge gains or huge losses.
  9. Busted pattern. So nice I show it twice. After the breakout reverses, trade the new direction.
  10. Cloudbank. For buy-and-hold investors, a cloudbank chart pattern is an easy way to make large profits.
  11. DCB setup. Here is a trading setup that rarely occurs, but can be quite profitable...or not.
  12. Dogs of the Dow. This used to be a winning setup but not anymore.
  13. Double bottom trading setup. Trades double bottoms and has won 80% of the time over 20 years.
  14. Dohmen setup (position trading). Several common sense rules combine to create swing or position trades.
  15. Double bottom. Use shallow throwbacks as an entry condition.
  16. Double 7s. This setup is for trading ETFs and it has a high win/loss ratio but little profits.
  17. Flat base (buy-and-hold). Here are the rules for trading a flat base pattern.
  18. Monthly symmetrical triangles. The monthly charts can yield some profitable setups.
  19. Rectangle bottom trading setup. Make an average of 2.5% in less than a week.
  20. Rectangle top trading setup. The best performing uses a 21-day simple moving average and 3 day exit.
  21. RSI Trading System This system scales out of trades.
  22. Swing traders. Use tall candles to help determine trend changes.
  23. Swing traders. Any retracement will do for a swing trade. Here are some tips.
  24. Intraday Setups

  25. Breakout (long). Find a congestion area and trade the upward breakout.
  26. Breakout (short). Find a congestion area and trade the downward breakout.
  27. Fibonacci retrace. After a strong down move, trade the bounce.
  28. Gap open (long). Buy after price gaps down.
  29. Gap open (short). If price gaps up, short the stock.
  30. Retrace trade (long). On 5-min scale, find a strong down trend and trade the bounce.
  31. Retrace trade (short). On 5-min scale, after a strong up trend, short the stock.
  32. RSI. Use the Wilder relative strength index to trade.

See Also

-- Thomas Bulkowski

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Copyright © 2005-2010 by Thomas N. Bulkowski. All rights reserved. Sharp as a marble.