As of 01/27/2023
Indus: 33,978 +28.67 +0.1%
Trans: 14,483 +191.14 +1.3%
Utils: 968 +1.08 +0.1%
Nasdaq: 11,622 +109.30 +0.9%
S&P 500: 4,071 +10.13 +0.2%
|
YTD
+2.5%
+8.1%
+0.0%
+11.0%
+6.0%
|
|
As of 01/27/2023
Indus: 33,978 +28.67 +0.1%
Trans: 14,483 +191.14 +1.3%
Utils: 968 +1.08 +0.1%
Nasdaq: 11,622 +109.30 +0.9%
S&P 500: 4,071 +10.13 +0.2%
|
YTD
+2.5%
+8.1%
+0.0%
+11.0%
+6.0%
| |
| ||
Statistics updated on 8/27/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns,
pictured on the right. The book gives a complete review of the chart pattern, including tour, identification guidelines, focus on failures, performance statistics, trading tactics, and sample trade. Below is just a sliver of the information contained in the book.
Inverted and descending scallops are robust performers in bull markets. Once the downward trend ends - if you can tell when that occurs - then buy and ride the new uptrend. Discovered by Thomas Bulkowski in mid 2004, but others may have found them sooner.
![]() Inverted and Descending Scallop
|
The above numbers are based on more than 1,500 perfect trades. See the glossary for definitions.
Characteristic | Discussion |
Price trend | Usually downward leading to the scallop or at bearish turning points. |
Shape | Looks line an inverted J. |
Smooth top | Look for a rounded top, not V-shaped, but be flexible. |
Down move | From the start of the pattern (point A in the above chart) to its high (B) averages 56% of the following down move from highest peak (B) to scallop end (C, the lowest valley). |
Ends | Both the scallop start and end should form at price turning points. |
Proportion | The height and width of the scallop should look proportional. |
Confirmation | The scallop confirms as valid when price closes below the lowest valley in the pattern without first closing above the scallop's peak. |
|
![]() The Measure Rule
|
The above figure shows an example of an inverted and descending scallop chart pattern. Point A begins the inverted scallop pattern and price peaks at B and then trends down to C, the end of the scallop. This one forms a handle, D, and that is quite common. Price resumes the downtrend after the handle completes.
-- Thomas Bulkowski
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