As of 03/24/2023
Indus: 32,238 +132.28 +0.4%
Trans: 13,707 +18.91 +0.1%
Utils: 911 +28.13 +3.2%
Nasdaq: 11,824 +36.56 +0.3%
S&P 500: 3,971 +22.27 +0.6%
|
YTD
-2.7%
+2.3%
-5.9%
+13.0%
+3.4%
|
 30,900 or 33,100 by 04/01/2023 15,350 or 13,400 by 04/01/2023940 or 860 by 04/01/202312,450 or 11,000 by 04/15/20234,100 or 3,800 by 04/01/2023 |
As of 03/24/2023
Indus: 32,238 +132.28 +0.4%
Trans: 13,707 +18.91 +0.1%
Utils: 911 +28.13 +3.2%
Nasdaq: 11,824 +36.56 +0.3%
S&P 500: 3,971 +22.27 +0.6%
|
YTD
-2.7%
+2.3%
-5.9%
+13.0%
+3.4%
| |
|
30,900 or 33,100 by 04/01/202315,350 or 13,400 by 04/01/2023940 or 860 by 04/01/202312,450 or 11,000 by 04/15/20234,100 or 3,800 by 04/01/2023 | ||
Statistics updated 8/27/2020.
In my book
Encyclopedia of Chart Patterns
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The ascending triangle is a decent performer after an upward breakout but suffers after a downward breakout.
Click ascending triangle to read about the Elliott wave version.
The above numbers are based on more than 1,400 perfect trades. See the glossary for definitions.
| Characteristic | Discussion |
| Price trend | Can be any direction leading to the chart pattern. |
| Shape | Triangular. Prices move between two converging trendlines. |
| Trendlines | Two trendlines bound prices; the top trendline is horizontal and the bottom one slopes upward. |
| Crossing | Price must cross the pattern from side to side, filling the triangle with price movement, not white space. |
| Touches | Price must touch one trendline at least three times, the other at least twice, forming distinct valleys and peaks. |
| Volume | Trends downward at least 78% of the time. |
| Breakout | Upward 63% of the time and 64% of the way to the triangle apex (for both breakout directions). |
Consult the figure on the right.
| Trading Tactic | Explanation |
The Measure Rule
|
|
| Measure rule | Compute the height from the price of the horizontal trendline (B) to the lowest valley in the pattern (A) and then multiply it by the above 'percentage meeting price target.' Add it (upward breakouts) or subtract it (downward breakouts) from the breakout price. The breakout price is the point at which price pierces the trendline. The associated link provides more information. | ||
| Stop | Place a stop loss order on the side opposite the breakout unless that would be too far away. Click the link on the left for stop placement information. For example, if the breakout is upward, a stop at any of the minor lows on side A would work well. For downward breakouts, use the price of B as the stop price. | ||
| Rise | Patterns with a intermediate-term rise (between 3 and 6 months) leading to the triangle show price rising an average of 49% after an upward breakout. |
|
|
| Throwback and Pullbacks | Throwbacks and pullbacks hurt post breakout performance. The links on the left define terms. For performance information on throwbacks and pullbacks, click the associated link. |
Expect the market to turn when it reaches the apex of the triangle. See Triangle Apex and Turning Points.
The figure shows an example of an ascending triangle. Price bounces between two converging trendlines, the top one is horizontal and the bottom one slopes upward.
To calculate a price target, subtract the price of the lowest valley in the chart pattern (A) from the price of the top trendline (B). That gives the height. Multiply the height by the 'percentage meeting price target' from the Important Bull Market Results table near the top of this page, and add it to the price of the top trendline B. In this example, point C makes for a good stop location.
For downward breakouts, compute the height in the same manner only subtract the height from C.
-- Thomas Bulkowski
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