As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 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 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
Statistics updated on 8/27/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns Second Edition
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Horn bottoms are H-shaped chart patterns that appear on all time scales, but the weekly charts show better performance over those appearing on the dailies. Discovered by Thomas Bulkowski in 1998. The statistics in this article were gathered from patterns on the weekly scale.
Horn Bottom Chart Pattern
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The above numbers are based on more than 1,000 perfect trades on the weekly scale. See the glossary for definitions.
| Characteristic | Discussion |
| Weekly chart | Use the weekly chart to locate horns. |
| Price trend | Downward leading to the pattern. |
| Shape | Looks like an inverted steer's horn, two parallel price spikes separated by a week. |
| Spikes | The spikes should be longer than most in the past year, but in the updated statistics, I didn't concern myself with spike length and performance improved... They should plummet below the surrounding price landscape, including the middle week. |
| Confirmation | The pattern confirms as valid when price closes above the highest price in the 3-week pattern. |
| Trading Tactic | Explanation | 
The Measure Rule
Spike Volume
Inside Week
|
| Measure rule | See the Measure Rule figure to the right. Compute the height from the highest price (point A) to lowest price (B) in the 3-week pattern then multiply it by the above 'percentage meeting price target.' Add the result to the highest high in the pattern (A) to get a target (C). | |
| Uptrends | Some horns appear near the end of uptrends, so watch for a trend change. | |
| Downtrends | Horns will usually not mark the end of a downtrend, but they will be close, say within a buck or so. | |
| Height | Tall horns perform better than short ones. | |
| Volume | Horns with heavy breakout volume tend to do well. Horns with volume heavier on the left spike and light on the right tend to outperform. The Spike Volume figure to the right shows an example of heavy left spike volume. | |
| Inside week | When the right horn is inside the trading range of the left horn (an inside week), the horn tends to outperform. The Inside Week figure to the right shows an example of this. Spike AB is taller and completely covers spike CD. | |
| Price Difference | Horns with a large price difference between the spike valleys tend to outperform. Using the Inside Week figure to the right, that means the price difference between bottoms B and D. | |
| Confirmation | Wait for price to close above the highest price in the pattern before taking a position. However, you can enter a trade by placing a buy stop a penny above the top of the highest price in the 3-week pattern. |
The above figure shows two examples of horn bottoms on the weekly scale. Each pair of red Hs represents one horn bottom. Price confirms the pattern when it closes above the highest peak in the 3-week pattern. I show this as a red line. Buy the following week or place a buy stop at the confirmation price.
-- Thomas Bulkowski
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