As of 05/16/2022
  Indus: 32,223 +26.76 +0.1%  
  Trans: 14,335 -121.64 -0.8%  
  Utils: 994 +1.06 +0.1%  
  Nasdaq: 11,663 -142.21 -1.2%  
  S&P 500: 4,008 -15.88 -0.4%  
YTD
-11.3%  
-13.0%  
 +1.3%  
-25.5%  
-15.9%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow15,500 or 13,700 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22
As of 05/16/2022
  Indus: 32,223 +26.76 +0.1%  
  Trans: 14,335 -121.64 -0.8%  
  Utils: 994 +1.06 +0.1%  
  Nasdaq: 11,663 -142.21 -1.2%  
  S&P 500: 4,008 -15.88 -0.4%  
YTD
-11.3%  
-13.0%  
 +1.3%  
-25.5%  
-15.9%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow15,500 or 13,700 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22

Bulkowski on Trendline Mirrors

 

Trendline Mirrors: Summary

Trendline mirrors seem to reflect price across a trendline. That's useful when trying to predict how far price will move in the future.

$ $ $

My book, Trading BasicsTrading Basics: Evolution of a Trader book., shown on the left, covers trendline mirrors starting on page 111.

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

$ $ $

Picture of Boeing on the daily scale.

The figure shows an example of a trendline mirror in Boeing on the daily scale.

Notice how the vertical distance at A mirrors the drop to D, not in shape but in extent. The reflection isn't a smooth one, but that's ok. It's the distance that interests us most (well, me, anyway). The BA move upward reflects across the trendline almost exactly to CD.

To use this method, starting from the breakout, C, find the highest distance from the most recent peak to the trendline directly below. That's the AB distance.

From the breakout apply this distance downward to get a price target (the price at C minus the AB distance). That method works 63% of the time. Thus, you can multiply the AB height by 63% and subtract that from the breakout (C) to get a target that price will reach over 90% of the time. Many of you will know this technique as the trendline measure rule. Look for trendline mirrors in finer stores nationwide.

-- 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.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy

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