As of 11/21/2024
Indus: 43,870 +461.88 +1.1%
Trans: 17,172 +169.53 +1.0%
Utils: 1,076 +20.58 +2.0%
Nasdaq: 18,972 +6.28 +0.0%
S&P 500: 5,949 +31.60 +0.5%
|
YTD
+16.4%
+8.0%
+22.0%
+26.4%
+24.7%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,200 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 11/21/2024
Indus: 43,870 +461.88 +1.1%
Trans: 17,172 +169.53 +1.0%
Utils: 1,076 +20.58 +2.0%
Nasdaq: 18,972 +6.28 +0.0%
S&P 500: 5,949 +31.60 +0.5%
|
YTD
+16.4%
+8.0%
+22.0%
+26.4%
+24.7%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,200 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
Released 12/17/2020.
Vicky Wong identified this pattern and brought it to my attention. Here's what she writes about it.
"The rapid [Covid-19] meltdown of February/March 2020 redefined "velocity" for many market participants, including novice traders like me from Singapore. Expectedly, my portfolio was in bad shape. The eventuality of a trend reversal solaced me.
"Being an avid reader of ThePatternSite.com (particularly, Pattern Trading Setups for the Weekend), I've learned that pipe bottoms and horn bottoms are very common when a stock transitions from trending down to range or trending up.
"Sometime in June 2020, I chanced upon a modified version of the horn bottom, where the middle bar of a horn was lower than the other two. Over the next three months, I identified more of them and call them V Pivots.
"Two features that popped: They are reliable at calling bottoms (i.e. they usually mark the end of downtrend) and post breakout performance is remarkably good. I conclude there is some degree of practical application."
I tested the performance of the pattern and present the results below.
V Pivot Bottom Chart Pattern
|
The above numbers are based on almost 1,400 perfect trades on the weekly scale. See the glossary for definitions.
Refer to the image to the right of the table.
| Characteristic | Discussion |  |
| Weekly chart | Use the weekly chart to locate V pivots. | |
| Price trend | Random. Fifty-one percent act as reversals of the downward price leading to the pattern. | |
| Shape | Looks like a V, a 3-bar pattern with the middle bar below the adjacent ones. The picture to the right shows the V pivot composed of bars 1, 2, and 3. | |
| Percentages | For identification, using the low price of each bar in the comparison, I used a 2% minimum: The low at bar 1 is at least 2% above the low of bar 2. The low of bar 3 is at least 2% above the low of bar 2. | |
| Confirmation | The pattern confirms as valid when price closes above the highest price in the 3 bars. In this example, that means a close above bar 1 (the highest priced bar among 1, 2, and 3). |
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | See the Measure Rule figure to the right. Compute the height from the lowest price (point A) to the highest price (B) in the 3-week pattern. Add it to the top of the pattern (B) to get the price target (C). Price reaches the target 74% of the time on average. | |
| Volume | V pivots with heavy breakout volume outperform (on average). | |
| Breakout | A breakout occurs when price closes above the highest price bar in the 3-bar pattern. In the figure, that means a close above line B (above the first bar in this pattern). | |
| Confirmation | Wait for a breakout before entering a position. |
Here is a slider show of three examples.
-- Thomas Bulkowski
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