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  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 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  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20

Bulkowski on Breakout Day Volume

 

Updated with new performance 9/18/2020.

Breakout Day Volume: Summary

Breakout day volume, when compared to the 30-day average, helps predict performance after the breakout. This article discusses the performance of chart patterns after heavy and light volume breakouts.

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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.

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-- Tom Bulkowski

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The following apply only to bull markets.

Heavy volume
Light volume
No volume preference
See Also

Heavy Breakout Day Volume

Heavy breakout day volume

Heavy breakout day volume is characterized by a volume spike that towers above the preceding month's worth of volume (see the figure to the right). Most times you can visually spot what the average volume will look like and compare it to the breakout day volume. Breakout day volume that is above average is heavy volume.

Here are the chart patterns in which price performs better, post breakout, when breakout day volume is above the 30-day average.

Chart Patterns, Upward Breakouts
Broadening bottom
Broadening formation, right-angled and ascending
Broadening formation, right-angled and descending
Broadening wedge, descending
Diamond bottom
Diamond top
Double bottom, Adam & Eve
Head-and-shoulders bottom, complex
Island bottom
Rectangle top
Roof
Roof, inverted
Rounded bottom
Rounded top
Scallop, ascending
Scallop, inverted and ascending
Scallop, descending
Scallop, descending and inverted
Triangles, ascending
Triangles, descending
Triangles, symmetrical
Triple bottom
V bottom
V bottom, extended
Wedge, falling
Wedge, rising

This is for chart patterns with downward breakouts

Chart Patterns, Downward Breakouts
Broadening formation,right-angled and ascending
Broadening top
Broadening wedge, descending
Double top, Adam & Adam
Double top, Eve & Adam
Island tops
Rectangle top
Roof, inverted
Rounded top
Scallop, ascending
Scallop, descending and inverted
Triangles descending
Triangles Symmetrical
Triple tops
Wedge, rising
V top, extended

Top of page More

Light Breakout Day Volume

Light breakout day volume

Light breakout day volume (reference the figure to the right) is volume that remains below the average volume over the prior month, and it occurs on the day price breaks out of a chart pattern. Look to the left on the volume chart and compare the average volume with the volume level on the chart pattern breakout day. Light breakout day volume will appear as a short spike below the surrounding volume spikes and below the average volume level.

Here are the chart patterns that perform better, post breakout, after breakout day volume that is below the 30-day average.

Chart Patterns, Upward Breakouts
Broadening top
Broadening wedge, ascending
Double bottom, Adam & Adam
Double bottom, Eve & Eve
Flag, high tight
Rectangle bottom
Three rising valleys

This is for chart patterns with downward breakouts

Chart Patterns, Downward Breakouts
Broadening formation, right-angled and descending
Broadening wedge, ascending
Bump-and-run reversal, top
Cup with handle, inverted
Diamond bottom
Diamond top
Head-and-shoulders top, complex
Wedge, falling

Top of page More

Breakout Day Volume: No Volume Preference

The following patterns show no performance improvement when sorted by heavy or light breakout day volume.

Chart Patterns, Upward Breakouts
Big W
Bump-and-run reversal, bottom
Cup with handle
Double bottom, Eve & Adam
Head-and-shoulders bottom

This is for chart patterns with downward breakouts

Chart Patterns, Downward Breakouts
Big M
Broadening bottom
Double top, Adam & Eve
Double top, Eve & Eve
Head-and-shoulders top
Rectangle bottom
Roof
Scallop, descending
Three falling peaks
Triangles Ascending
V top

-- Thomas Bulkowski

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

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