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's Height and Width Study

Statistics updated and new patterns added: 9/10/2020.

In numerous studies I have conducted, one factor towers above all others when trying to gauge the best performance of a chart pattern: Height. Tall chart patterns perform better than short ones. What is meant by tall and what is meant by short?

Compute the chart pattern's height from the highest peak to the lowest valley. Divide the result by the breakout price and then compare it to the median height shown in the following table. If your number is greater than the median then you have a tall pattern. If your number is less than the median then your chart pattern is short.

A similar situation applies to width. Unfortunately, width is a poor indicator of performance because some wide chart patterns perform better and some don't. Measure the length of the chart pattern from its start to its end (in calendar days and not price bars) and compare it to the median width listed in the following table. Wide chart patterns have widths greater than the median. Narrow chart patterns have widths less than the median.

Where does a chart pattern start and end? Use the first peak or valley and the last peak or valley in the chart pattern as the start and end points. A head-and-shoulders top, for example, begins with the highest peak in the left shoulder and ends with the highest peak in the right shoulder.

The "Works Best" column in the following table tells whether tall or short works best for height and narrow or wide works best for width.

-- Thomas Bulkowski

Height and Width Study: Bull Markets Only

-- Thomas Bulkowski

More

See Also

• This research study discusses time versus pattern width.
• Can we predict the breakout (by knowing the trend start and width)?
• The study of studies provides additional information on pattern width and height.
• How to pick stocks, part 1.
• Premature buying. Learn how to prevent buying too soon.
• 3 tips to help you pick stocks.
• 12 tips for stock selection.

All great discoveries are made by mistake.