As of 06/04/2020
  Indus: 26,282 +11.93 +0.0%  
  Trans: 9,575 +134.48 +1.4%  
  Utils: 814 -17.21 -2.1%  
  Nasdaq: 9,616 -67.10 -0.7%  
  S&P 500: 3,112 -10.52 -0.3%  
YTD
-7.9%  
-12.2%  
-7.4%  
 +7.2%  
-3.7%  
  Targets    Overview: 05/29/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Up arrow850 or 750 by 06/15/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,200 or 2,850 by 06/15/2020
CPI (updated daily): Arrows on 5/15/20
As of 06/04/2020
  Indus: 26,282 +11.93 +0.0%  
  Trans: 9,575 +134.48 +1.4%  
  Utils: 814 -17.21 -2.1%  
  Nasdaq: 9,616 -67.10 -0.7%  
  S&P 500: 3,112 -10.52 -0.3%  
YTD
-7.9%  
-12.2%  
-7.4%  
 +7.2%  
-3.7%  
  Targets    Overview: 05/29/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Up arrow850 or 750 by 06/15/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,200 or 2,850 by 06/15/2020
CPI (updated daily): Arrows on 5/15/20

Bulkowski's Top 10 Reversals and Continuations

 

The rank shown in these tables is old. A more recent version can be found in the Time Performance list. I'll update this article when new information becomes available and time allows.

 

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

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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
Flags, High and Tight, up breakout69%
Triangles, Descending, up breakout58%
Scallops, Ascending and Inverted, up breakout47%
Broadening Wedges, Ascending, up breakout46%
Rectangles Bottoms, up breakout46%
Three Rising Valleys, up breakout46%
Pipe Bottom, up breakout45%
Bump-and-Run Reversal Bottoms, up breakout40%
Double Bottoms, Eve & Eve, up breakout40%
Head-and-Shoulders Bottoms, up breakout38%

Top 10 Continuations, Upward Breakouts

Chart PatternAverage Rise
Diamond Bottoms, up breakout58%*
Rounding Bottoms, up breakout47%
Triangles, Descending, up breakout43%
Scallops, Ascending and Inverted, up breakout41%
Rectangles Tops, up breakout39%
Rounding Tops, up breakout38%
Triple Bottoms, up breakout38%
Broadening Wedges, Descending, up breakout38%
Broadening Wedges, Ascending, up breakout36%
Bump-and-Run Reversal Bottoms, up breakout36%

* Based on fewer than 30 samples

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Top 10 Reversals, Downward Breakouts

Chart PatternAverage Decline
Head-and-Shoulders Tops, Complex, down breakout23%*
Islands, Long, down breakout23%
Broadening Wedges, Descending, down breakout22%
Head-and-Shoulders Tops, down breakout22%
Diamond Tops, down breakout22%
Horn Tops, down breakout21%
Bump-and-Run Reversal Tops, down breakout21%
Pipe Tops, down breakout20%
Rounding Tops, down breakout20%
Diamond Bottoms, down breakout19%

* Based on fewer than 30 samples

Top 10 Continuations, Downward Breakouts

Chart PatternAverage Decline
Islands, Long, down breakout22%
Diamond Bottoms, down breakout21%
Broadening Formations, Right-Angled and Descending, down breakout20%
Broadening Formations, Right-Angled and Ascending, down breakout20%
Rounding Tops, down breakout20%
Broadening Wedges, Descending, down breakout19%
Triangles, Ascending, down breakout19%
Diamond Tops, down breakout19%*
Triple Tops, down breakout19%
Pennants, down breakout19%

* Based on fewer than 30 samples

Notes:

The average rise and decline is for hundreds of ‘perfect trades' without commissions or fees deducted. Each reversal or continuation measures from 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 © 2005-2019 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 registered trademarks of their respective owners.

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I don't care what star you're following! Get those camels off my lawn!Smiley