As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on Ascending Scallops

Statistics updated on 8/26/2020.

For more information on this pattern, read Encyclopedia of Chart Patterns, pictured on the right. That book gives a complete review of the chart pattern, compared to what is described below.

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.

$ $ $

Ascending Scallop: Overview

Ascending scallops are arguably the most common chart pattern. They are mid-list performers.

Important Bull Market Results for Ascending Scallops Overall performance rank for up/down breakouts (1 is best): 20 out of 39/22 out of 36 Break even failure rate for up/down breakouts: 11%/23% Average rise/decline: 42%/15% Throwback/pullback rate: 68%/64% Percentage meeting price target for up/down breakouts: 62%/29% The above numbers are based on more than 1,600 hundreds of perfect trades. See the glossary for definitions.

Ascending Scallop

Ascending Scallop: Identification Guidelines

Ascending Scallop: Trading Tips

Consult the associated figures on the right.

Trading Tactic	Explanation	The Measure Rule Scallop Handle
Measure rule	Compute the height from the highest peak (A) to the lowest valley in the pattern (B) and then multiply it by the above 'percentage meeting price target.' Add the difference to the highest peak (A) to get a price target for upward breakouts (C) or subtract it from the lowest valley (B) for downward breakouts to get a target price. The link to the left provides more information on the measure rule.
Handle	When price peaks on the right of the pattern, it often retraces, forming a handle or another scallop. When price bottoms, buy. The figure on the lower right shows an example.
Stop	Place a stop below the lowest valley (B in the figure to the upper right) if it's not too far away. The associate link provides more information about stop placement.
Breakout volume	Ascending scallops with heavy breakout volume outperform. The link to the left provides more information while this link provides performance information.
Yearly middle	Upward breakouts from scallops in the middle third of the yearly price range do best. See the link to the left for more information.
Throwback	Throwbacks hurt post breakout performance. The link on the left defines a throwback and this link gives performance information.
Series	Ascending scallops in a rising price trend tend to get shorter and narrower as the trend end approaches.

Ascending Scallop: Example

The figure on the right shows an example of an ascending scallop chart pattern. Price bottoms at point A and then rises to B where it rounds downward to C.

To calculate a price target, subtract the price of valley A from peak B. That finds the height. Multiply the height by the 'percentage meeting price target' from Important Bull Market Results table near the top of this page, and add the result to the price at B.

Place a stop loss order a few pennies below C if the ascending scallop forms a handle. If no handle appears, a stop below A may be too far away, but consider it. Raise the stop as price rises.

For downward breakouts, subtract the B-A height from A to get a lower target. Ignore targets less than zero.

-- Thomas Bulkowski

See Also

• Trading pattern pairs: Scallop, ascending
• Ascending scallops. Slider quiz!
• Have you found a rounding bottom instead?
• Cup with handles have a poor track record. Find out why.
• Ascending and inverted scallops
• Descending and inverted scallops
• Descending scallops

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