As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
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YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 |
As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
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Encyclopedia of Candlestick Charts
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The rising window is a fancy name for a price gap in an upward price trend. It occurs when yesterday's high is below today's low, leaving a hole on the daily price chart. The pattern appears in a rising price trend, and it acts as a bullish continuation pattern. Rising windows occur often, so you will find them on the charts, but the longer the time scale, the more difficult it is to find one.
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Theoretical performance: Bullish continuation
Tested performance: Bullish continuation 75% of the time
Stopped in gap: 20%
Frequency rank: 20
Overall performance rank: 42
Average time to gap closed: 79 days
Median time to gap closed: 11 days
The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Rising Window
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As I mentioned in the introduction, the rising window is a space left on the price chart. On the daily chart, a surprisingly good earnings announcement or other corporate event can create a gap. The rising window acts as a bullish continuation pattern 75% of the time, which is very good. The overall performance rank is 42, but that really measures the price trend surrounding the rising window and not the window itself.
One of the more interesting statistics from Important Results is the stopped in gap number. For a rising window, this is the percentage of time that a minor low appeared within the gap before price closed the gap. In other words, a gap showed underlying support 20% of the time.
The average time to close the gap is 79 days, but the median is 11 days. Closing the gap means price retraces far enough to cover the gap. If price gaps from $1 to $1.50, then price would have to drop back to $1 to close the gap. The large difference between the two numbers, 79 and 11, is because the average has some gaps which take a long time to close, pulling the average upward. The median just splits the list in two and reports on the middle number.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Upward. |
| Configuration | Find a pattern in which yesterday's high is below today's low. |
The chart of 3M shows many different windows, some rising and some falling. A falling window will appear in a downward price trend, such as that shown at point A. The day after the white candle, price gaps open lower and struggles to close the gap throughout the day, but cannot do it. A hole remains on the chart.
The other points, B, C, and D, are all gaps called rising windows. Those have a high price on one day that remains below the low of the next day, leaving a hole on the chart.
One of the secrets to rising and falling windows is to determine the gap type. Rising window B, for example, is a breakaway gap because it breaks away from the small congestion area. C is an exhaustion gap because the price trend ends soon after. Point D is an area or common gap because price closes that gap shortly after it appears.
What type of gap is falling window A? Since price is trending lower, it is probably an exhaustion gap and not an area gap.
-- Thomas Bulkowski
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