As of 12/02/2024
Indus: 44,782 -128.65 -0.3%
Trans: 17,545 -73.73 -0.4%
Utils: 1,057 -21.90 -2.0%
Nasdaq: 19,404 +185.78 +1.0%
S&P 500: 6,047 +14.77 +0.2%
|
YTD
+18.8%
+10.4%
+19.9%
+29.3%
+26.8%
|
 44,000 or 46,000 by 12/15/202417,025 or 18,000 by 12/15/20241,025 or 1,100 by 12/15/2024 20,000 or 18,500 by 12/15/20246,200 or 5,900 by 12/15/2024 |
As of 12/02/2024
Indus: 44,782 -128.65 -0.3%
Trans: 17,545 -73.73 -0.4%
Utils: 1,057 -21.90 -2.0%
Nasdaq: 19,404 +185.78 +1.0%
S&P 500: 6,047 +14.77 +0.2%
|
YTD
+18.8%
+10.4%
+19.9%
+29.3%
+26.8%
| |
|
44,000 or 46,000 by 12/15/202417,025 or 18,000 by 12/15/20241,025 or 1,100 by 12/15/202420,000 or 18,500 by 12/15/20246,200 or 5,900 by 12/15/2024 | ||
Updated with new statistics on 8/25/2020.
The Big M chart pattern is a double top with tall sides. Price often approaches the low of the left side trend start (the launch point -- see the below picture) before recovering.
The above numbers are based on over 2,000 samples. See the glossary for definitions.
| Characteristic | Discussion |
| Price trend | Upward leading to the pattern, often a long, straight-line run upward. |
| Shape | A big M shape with twin peaks and tall sides. |
| Reversal pattern | Look for a double top reversal pattern at the top of the big M. |
| Tall sides | The double top should have twin peaks with highs less than 4% apart, but be flexible. |
| Drop between tops | The drop between the peaks of the double top is 10% to 20% or more, but be flexible. |
| Breakout confirmation | The pattern confirms as a valid one when price closes below the lowest valley between the two tops. |
Consult the associated figure on the right.
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | Compute the height from the highest peak (A) to the lowest valley (B). Subtract the height from the confirmation point (B) to get a target (D). The result is the target price. The link to the left explains the measure rule. If you are lucky, price will bottom (D) at the launch price (E). For a closer target, use half the height in the above steps instead of the full height. | |
| Breakout | Downward breakouts occur when price closes below the confirmation price (the lowest valley between the two peaks, B in this case). | |
| Stall | For swing traders, sell short at the second double top peak (F) and ride price downward to confirmation of the double top (the price of B). If price rises above the highest peak in the pattern (A), consider exiting the position because price is likely to continue higher. If price confirms the Big M, expect the decline to approach the left side low (E). It usually does not make it all the way down, but it will be close. | |
| Position traders | Wait for confirmation of the Big M (price to close below B) before taking a position and be prepared to exit the position as the stock nears the price of the left side low (E). |
The figure on the right shows an example of an unusual Big M chart pattern. In this example, a triple top (ABC) replaces a double top (AB) in the Big M. In my trading (but not for the statistics in this article where I use only double tops), I allow many reversal patterns, such as ascending, descending or symmetrical triangles, triple tops, and so on, to replace the double top.
In this example, price breaks out when it closes below the horizontal red confirmation line then pulls back before resuming the downward march. Price at E, reaches the launch price of D almost exactly before staging a recovery. Notice the tall, straight-line run up from D to A and the slower decline from C to E. That's typical.
-- Thomas Bulkowski
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