As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20
As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20

Bulkowski's Top 10 Reversal and Continuation Chart Patterns

 

Statistics updated 9/17/2020.

Top 10 Reversals and Continuations: Summary

The following are the top 10 performing chart reversal and continuation patterns. A complete list of chart patterns for both bull and bear markets is available in an Excel spreadsheet by clicking here.

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My book, Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book. pictured on the left, takes an in-depth look at 63 chart and event patterns, including performance statistics.

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.

-- Tom Bulkowski

$ $ $

By taking the average of the averages, which is unscientific (but it does give a hint), we find that chart patterns acting as reversals outperform those continuing to trend in both bull and bear markets.

The following covers the top ten performers in bull markets only.

Top 10 Reversals, Upward Breakouts

Chart patternAverage Rise
Rectangle top65%
Rounded top61%
Bump-and-run reversal bottom52%
Double bottom, Eve & Eve50%
Scallop, descending and inverted49%
Broadening formation, right-angled and ascending47%
Head-and-shoulders bottom, complex47%
Rounded bottom47%
Scallop, inverted and ascending47%
Big W46%

Top 10 Continuations, Upward Breakouts

Chart PatternAverage Rise
Double bottom, Adam & Eve64%
Bump-and-run reversal bottom58%
Rectangle bottom58%
Cup with handle54%
Rounded top51%
Three rising valleys51%
Rectangle top50%
Triple bottom49%
Rounded bottom48%
Head-and-shoulders bottom, complex47%

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Top 10 Reversals, Downward Breakouts

Chart PatternAverage Decline
V top extended18%
Diamond top17%
Big M17%
Bump-and-run reversal top17%
Head-and-shoulders top, complex17%
Rounded top16%
Roof16%
Cup with handle, inverted16%
Double top, Adam & Eve16%
Double top, Eve & Eve16%

Top 10 Continuations, Downward Breakouts

Chart PatternAverage Decline
Broadening top20%
V top extended19%
Bump-and-run reversal top19%
Rounded top19%
Double top, Eve & Eve19%
Diamond bottom19%
Diamond top18%
Cup with handle, inverted18%
Scallop, ascending18%
Double top, Adam & Eve17%

Notes:

The average rise and decline are for hundreds of 'perfect trades' without commissions or fees deducted. Each reversal or continuation measures from the opening price the day after the breakout to the ultimate high (upward breakout) or low price (downward breakout). The ultimate high is the highest high before price drops by at least 20%. The ultimate low is the lowest low before price rises by at least 20%. Other restrictions apply, but you get the idea.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

Copyright © 2005-2020 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 registered trademarks of their respective owners.

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