As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/27/2022
  Indus: 29,135 -125.82 -0.4%  
  Trans: 12,153 +153.95 +1.3%  
  Utils: 934 -19.25 -2.0%  
  Nasdaq: 10,830 +26.58 +0.2%  
  S&P 500: 3,647 -7.75 -0.2%  
YTD
-19.8%  
-26.2%  
-4.7%  
-30.8%  
-23.5%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski on Pattern Pairs: Falling Wedges

Initial release: 12/13/2021.

The idea behind pattern pairs is to pick a chart pattern type (like broadening bottoms with upward breakouts) to buy and another to sell (like double tops). You buy the upward breakout from the broadening bottom, hold for a few years, and sell when a double top appears and breaks out downward. Along the way, you give price a chance to rise far enough to overcome those trades which are stopped out for a loss. This is a trend-following strategy.

Trading Falling Wedges: Summary

Picture of the pattern pairs.

The figure illustrates the idea for trading pattern pairs, where price is the red line and the boxes are chart patterns. This articles assumes you buy an upward breakout from either a falling wedge or a busted one (price breaks out downward, drops no more than 10%, reverses, and closes above the top of the wedge). Buy as price rises above the top of the wedge.

On the sale side, you can sell the first bearish chart pattern which comes along or wait for your favorite bearish chart pattern to appear and sell then.

Here's a list of the top five performing sell signals, based on annualized gain (annualized because the hold time is often years, in parenthesis).

Sell a...

The following list shows the expected performance of chart pattern pairs, ranked by their expectancy. Expectancy is a way of gauging winning and losing trades and how much money you might make trading a pattern pair. I put the expected profit per trade, per share, in parenthesis.

To improve performance, try these tips.

Top of page

Trading Falling Wedges: Entry and Exit Conditions

The databases I built over several decades doesn't identify every chart pattern. There may be plenty of double tops over the years, for example, that I didn't catalog on the way to the one I did catalog. So buying an upward breakout from a falling wedge and selling at the double top I cataloged would be different than choosing to sell a different double top. However, the following analysis does give a real-world flavor for how well you might do trading chart patterns if you follow the pattern pair strategy.

Here's what I used in my analysis.

I used the following 43 chart patterns in the analysis, but some only applied if they were busted.

Top of page

Trading Falling Wedges: Stops

I used a stop loss order set a penny below the bottom of the chart pattern. Price on the way down may have gapped below the stop price (for the sale price), so I used the lower of the stop price or the opening price on the day of sale).

For trailing stops, I removed the stop loss order and used a trailing stop set at 10%, 15%, 20%, or 25% below a peak, never lowering the stop value, but raising it if a higher peak came along during the trade.

In Table 1, I calculated the percentage net gain (the average of gains and losses) when using various trailing stop loss amounts (10%, 15%, 20%, and 25%) for all tested chart patterns according to the busted/non-busted buy/sell configuration. In parenthesis is the size of the average loss so I could detail how losses change with various stop loss orders.

For example, if I tested non-busted falling wedges and sold various non-busted patterns (ascending triangles, broadening tops, head-and-shoulders tops, and so on), I made an average of 45% ("Stop Loss Only" column) after having a stop loss order in place. Losses averaged 7%. Replacing the stop loss with a 10% trailing stop cut the gain to 6% but also trimmed the average loss to 5%. Using a 25% trailing stop allowed me to keep more money, 23%, but losses climbed to 15%. If I didn't use any type of stop, the gain averaged 123% with losses averaging 27%.

The results show that trades which do not use a stop make the most money but losses are huge. In all columns, non-busted patterns outperformed busted ones.

Table 1: Various Trailing Stop Settings: Net Profit and (Average Loss)
Data 10%  15%  20%  25%  Stop Loss 
Only
 No Stop
Non-busted buys, non-busted sales 6% (-5%)  9% (-8%)  17% (-11%)  23% (-15%)  45% (-7%)  123% (-27%) 
Busted buys, non-busted sales 1% (-9%)  2% (-12%)  8% (-14%)  15% (-19%)  25% (-12%)  45% (-33%) 
Non-busted buys, busted sales 5% (-5%)  7% (-8%)  13% (-11%)  20% (-14%)  33% (-6%)  98% (-23%) 
Busted buys, busted sales 2% (-6%)  4% (-9%)  10% (-10%)  17% (-14%)  21% (-11%)  54% (-27%) 

Top of page

Trading Falling Wedges: Busted Patterns

Table 2 shows what I found when comparing the performance of non-busted patterns (both buy and sell) with busted and non-busted chart patterns. In 22 or 31 contests (up to 31 different chart pattern types, depending on which apply), I compared the three combinations of busted and non-busted buy and sell signals to non-busted buy and sell signals. The table below shows the percentage of time the busted combination beat the non-busted combination in the contests.

For example, I found that busted patterns won just 18% of the time or 4 of 22 contests when trading (buying and selling) using busted patterns (compared to non-busted for both).

According to the contest results, avoid trading using busted chart patterns.

Table 2: Busted or Non-Busted Contest Winners
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternN/A (benchmark)50%
Buy busted pattern29%18%

Top of page

Trading Falling Wedges: Non-busted Buy, Non-Busted Sale

Picture of a busted pattern pair.

Table 3 shows statistics I collected for falling wedges using the trading rules described above and shown in the figure. A stop loss order was used and priced a penny below the bottom of the chart pattern (after buying).

For example, if you were to buy the upward breakout from a falling wedge chart pattern and hold it until you encountered a broadening bottom (the first chart pattern listed in the table), but one with a downward breakout, you'd net an average of 23% on the 172 (34 winners, 138 losers) trades. That's an average of 208% on your winners, 7% average loss on your losers. You'd find that only 20% of the trades made money but you'd gain an average of 23% per year (ranking 37th where 1 is best). If you removed the stop loss order and just held on until the broadening bottom with a downward breakout appeared, you'd make an average of 107% per trade.

The expectancy averages $1.60 per share per trade which ranks 56th where 1 is the best value.

Notes: The rank is based on the net gain for all four performance tables (tables 3 to 6) shown below. Trades with sample counts below 30 are not ranked.

Table 3: Statistics for Falling Wedges
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom208%-7%36%23%37107%34/13820%$1.6056
Broadening top248%-6%43%31%20113%54/22619%$3.8919
Broadening formation, right-angled and ascending214%-7%34%28%2884%28/12518%$1.1461
Broadening formation, right-angled and descending130%-7%20%18%5259%26/10720%$1.0563
Broadening wedge, ascending138%-8%24%25%3286%24/8622%$1.0662
Broadening wedge, descending215%-7%43%25%3394%21/7223%$3.4522
Bump-and-run reversal top215%-7%45%44%10109%88/29123%$2.7634
Diamond bottom358%-7%57%45%997%8/3817%$2.8630
Diamond top280%-5%29%34%1891%17/12312%$3.0326
Adam & Adam double top552%-6%79%45%8214%97/53915%$6.237
Adam & Eve double top241%-6%30%28%27129%49/28215%$2.5737
Eve & Adam double top225%-6%27%21%42145%48/28814%$2.9528
Eve & Eve double top199%-6%33%29%24125%78/32819%$2.4242
Falling wedge216%-9%16%13%6446%7/5511%-$2.3479
Head-and-shoulders top289%-6%57%37%14134%260/95721%$3.7720
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top205%-6%38%29%2584%49/18421%$2.1346
Rectangle top120%-7%14%15%6065%32/16117%$1.7353
Rising wedge162%-6%30%26%30105%77/28321%$2.1047
Rounding top167%-8%19%17%5776%33/18515%$0.4868
Ascending scallop282%-7%65%67%2101%22/6725%$2.2544
Descending scallop429%-8%76%57%4128%116/48919%$2.9627
Scallop, inverted and ascending478%-6%58%40%13146%5/3313%$3.5721
Scallop, descending and inverted276%-7%47%41%1281%61/25519%$1.7852
Triangle, ascending245%-7%47%33%1998%47/17421%$2.8432
Triangle, descending135%-7%22%19%5060%44/17320%$1.4558
Triangle, symmetrical162%-6%22%18%5686%105/52517%$1.4957
Triple top283%-6%40%30%22121%144/75516%$2.9329
Rectangle bottom353%-7%62%51%593%30/12619%$2.8531
3 falling peaks399%-7%56%43%11122%143/77916%$2.6536
Roof90%-6%14%22%39120%12/4621%$1.9349
Roof, inverted339%-7%55%36%15168%16/7318%$5.3511
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

Top of page

Trading Falling Wedges: Busted Buy, Non-Busted Sale

Picture of a busted pattern pair.

The figure shows the setup for this scenario. When price busts the bearish chart pattern (busts a downward breakout from a falling wedge in a bull market), buy. Sell after a downward breakout from the target chart pattern.

Table 4 shows the performance of busted falling wedges for the entry and sales after downward breakouts from various bearish chart patterns. A stop loss order was used and priced a penny below the bottom of the wedge (after buying).

A busted falling wedge has a downward breakout but price drops no more than 10% before reversing and moving above the top of the wedge. Buy when price moves at least a penny above the top of the busted wedge. Sell after price drops at least a penny below the target chart pattern.

For example, buying a falling wedge with a busted downward breakout in a bull market (the entry price is really the higher of a penny above the top of the wedge or the opening price) and selling after the downward breakout from a broadening top shows winners averaging gains of 89%. Losses average 13%, for a net of 3%. Only 32 trades occurred with a win/loss ratio of 16%. This scenario ranks the annualized net gain as 74th among the four tables. If you traded this as a buy-and-hold position, meaning no stops were used, the net gain climbed to 43%. Expectancy was a loss of $0.70 per share, ranking 75th where 1 is best. You'll have a difficult time trading this pair and making a profit.

Trades with sample counts below 30 are not ranked.

Table 4: Statistics for Busted Buys, Normal Sales
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom89%-13%3%2%7443%5/2716%-$0.7075
Broadening top235%-12%44%23%3891%11/3723%$4.5815
Broadening formation, right-angled and ascending210%-13%54%24%3476%9/2130%$2.2145
Broadening formation, right-angled and descending84%-15%-4%34%2/1611%
Broadening wedge, ascending150%-10%36%67%4/1029%
Broadening wedge, descending38%-12%2%51%7/1828%
Bump-and-run reversal top87%-14%14%8%6647%14/3727%$4.8814
Diamond bottomNone-13%-13%76%0/50%
Diamond top119%-15%47%77%6/746%
Adam & Adam double top244%-13%36%14%6186%22/9519%$6.885
Adam & Eve double top103%-13%11%5%6972%11/4121%$0.2969
Eve & Adam double top80%-13%1%1%7542%9/5015%-$1.3276
Eve & Eve double top65%-15%8%4%7346%13/3328%-$2.0078
Falling wedge144%-16%35%52%6/1332%
Head-and-shoulders top233%-11%55%24%3695%55/14627%$5.909
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top19%-11%-7%-6%8125%4/2813%-$1.7077
Rectangle top23%-14%-7%-4%7957%6/2420%-$2.4680
Rising wedge282%-10%53%29%23106%12/4421%$4.3317
Rounding top165%-13%7%14%3/2312%
Ascending scallopNone-14%-14%15%0/60%
Descending scallop146%-14%24%14%6246%27/8823%$1.2360
Scallop, inverted and ascending94%-9%20%33%2/529%
Scallop, descending and inverted60%-13%5%5%7013%9/2626%$0.6266
Triangle, ascending241%-12%35%68%5/2219%
Triangle, descending33%-12%-3%25%5/1822%
Triangle, symmetrical229%-12%56%24%3595%28/7228%$6.038
Triple top128%-12%15%8%6760%31/13019%$1.2459
Rectangle bottom23%-11%-9%5%1/195%
3 falling peaks99%-13%7%4%7241%37/17418%-$0.1271
Roof394%-12%39%87%1/713%
Roof, inverted243%-15%88%148%6/940%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

Top of page

Trading Falling Wedges: Non-busted Buy, Busted Sale

Picture of a busted pattern pair.

The figure shows an example of how this trade unfolds.

A bullish chart pattern appears and you buy at the breakout. Continue holding until your selected chart pattern appears. The chart pattern is bullish because it has an upward breakout but then things go wrong. Price reverses. Sell when the stock dips below the bottom of the chart pattern (meaning it busts the upward breakout).

Table 5 shows the performance statistics for this setup (buying a normal falling wedge and selling only after a busted chart pattern appears). A stop loss order was used and priced a penny below the bottom of the chart pattern (after buying).

For example, buying a falling wedge with an upward breakout in a bull market and selling a busted broadening top shows winning trades making an average of 289%. Losing trades lost 6%, giving a net gain of 60%. The annualized gain is 28% in this case, giving the setup a rank of 29th (where 1 is best). If you traded this without a stop, the net gain climbed to 121%. Of the stocks I looked at, I found 58 trades with 22% of them winning. Expectancy was a $1.62 per share, ranking 55th where 1 is best.

Trades with sample counts below 30 are not ranked.

Table 5: Statistics for Normal Buy, Busted Sale
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom289%-6%60%28%29121%13/4522%$1.6255
Broadening top235%-6%26%20%46104%20/13313%$2.5139
Broadening formation, right-angled and ascending130%-6%19%16%5865%10/4419%$1.8150
Broadening formation, right-angled and descending36%-6%-1%-2%7835%6/4811%-$0.5773
Broadening wedge, ascending174%-7%58%139%12/2136%
Broadening wedge, descending141%-7%23%18%5475%9/3620%$1.7851
Bump-and-run reversal bottom54%-7%5%72%5/2119%
Cup with handle98%-8%14%52%5/1921%
Diamond bottom187%-6%34%28%2694%8/3121%$11.681
Diamond top302%-5%77%47%6128%15/4127%$5.3312
Adam & Adam double bottom276%-5%44%21%44155%35/16318%$7.543
Adam & Eve double bottom101%-6%5%5%7196%14/11711%$0.6067
Eve & Adam double bottom275%-6%25%20%47104%10/8011%$0.0770
Eve & Eve double bottom283%-7%40%22%41115%16/8316%$4.3118
Falling wedge128%-6%18%18%5365%11/5018%$2.4940
Head-and-shoulders bottom207%-5%26%21%4573%37/21515%$0.9864
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders complex bottom141%-6%35%21%4344%11/2928%$6.236
Rectangle top297%-6%36%36%1781%14/8814%$3.3124
Rising wedge91%-5%24%18%5556%18/4131%$2.6835
Round bottom120%-4%16%57%3/1517%
Rounding top331%-8%51%73%5/2417%
Ascending scallop266%-7%64%46%7113%18/5226%$4.5316
Descending scallop145%-6%18%13%6386%6/3116%$7.592
Scallop, inverted and ascending210%-7%41%26%31102%25/8822%$4.8813
Scallop, descending and inverted375%-5%73%66%3124%8/3121%$2.4941
Triangle, ascending131%-6%21%19%5173%17/7020%$0.9865
Triangle, descending320%-6%34%30%2183%11/7713%$1.7054
Triangle, symmetrical221%-6%31%22%4095%39/20016%$2.7933
Triple bottom240%-6%26%19%49101%39/26113%$2.5238
Rectangle bottom45%-6%-4%-6%8043%2/474%-$0.3072
3 rising valleys353%-6%50%36%16128%28/14916%$3.1425
Roof258%-7%31%126%2/1214%
Roof, inverted499%-5%121%70%1159%8/2425%$5.3710
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

Top of page

Trading Falling Wedges: Busted Buy, Busted Sale

Picture of a busted pattern pair.

Table 6 shows the last combination of trading statistics. It shows busted falling wedges as the entry signal and various busted chart patterns as the exit signal. A stop loss order was used and priced a penny below the bottom of the chart pattern (after buying).

The associated figure shows the setup.

For example, buying a busted falling wedge and selling a busted broadening top made 215% from the winners, lost 11% on the losers for a net gain of 15%. Annualized, it was 15%. The net gain placed the performance of this setup at 59, where 1 is best. Removing stops from the trades allowed them to make 100%. Only 38 trades were taken and 21% of them were winners. Expectancy was a gain of $7.13 per share, ranking 4th among the four tables.

Trades with sample counts below 30 are not ranked.


Table 6: Statistics for Busted Buys and Sales
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom32%-11%-1%49%3/1023%
Broadening top215%-11%37%15%59100%8/3021%$7.134
Broadening formation, right-angled and ascending122%-12%10%47%2/1017%
Broadening formation, right-angled and descending84%-14%1%30%2/1115%
Broadening wedge, ascendingNone-19%-19%87%0/10%
Broadening wedge, descending443%-12%53%75%1/614%
Bump-and-run reversal bottomNone-9%-9%92%0/60%
Cup with handle28%-11%-1%2%1/325%
Diamond bottom142%-9%12%27%1/614%
Diamond top93%-10%41%77%4/450%
Adam & Adam double bottom44%-13%-4%-2%7760%6/3315%-$3.3781
Adam & Eve double bottom290%-11%77%105%7/1729%
Eve & Adam double bottom548%-12%81%179%4/2017%
Eve & Eve double bottom790%-13%77%101%2/1611%
Falling wedge65%-12%18%50%7/1139%
Head-and-shoulders bottom88%-12%13%6%6849%16/4725%$3.3823
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders complex bottom75%-14%1%14%1/517%
Rectangle top73%-10%14%37%4/1029%
Rising wedge15%-15%-5%3%2/433%
Round bottom243%-5%119%124%1/150%
Rounding top1%-10%-6%8%1/233%
Ascending scallop14%-13%-11%35%1/109%
Descending scallop30%-9%-4%16%1/811%
Scallop, inverted and ascending91%-12%-2%168%1/109%
Scallop, descending and inverted57%-13%-8%71%1/137%
Triangle, ascending29%-14%-7%23%3/1418%
Triangle, descending75%-9%22%43%6/1038%
Triangle, symmetrical53%-12%0%0%7632%10/4120%-$0.5974
Triple bottom169%-12%24%12%6570%15/6020%$2.0648
Rectangle bottom26%-12%-4%56%3/1220%
3 rising valleys253%-12%40%20%48108%11/4520%$2.3043
RoofNone-9%-9%28%0/30%
Roof, inverted36%-12%12%50%2/250%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

Top of page

Trading Falling Wedges: Performance Improvements

Here are a few ideas the data suggested which may improve performance of your pattern pairs trading.

Trend Start: Short, Medium, or Long

Find the trend start for your chart pattern. Often you can just look at a chart and see where the trend begins. If not, or you want to be sure, then the glossary describes how to find it.

Determine the length from the trend start to the pattern's start: short term (less than 3 months), medium term (3 to 6 months) or long term (more than 6 months).

Table 7 shows the results for the four combinations of busted/non-busted trades and the resulting performance.

Buying non-busted patterns with a short-term (up to 3 months) duration from the trend start to the pattern's start results in better performance. Busted patterns do best using a medium-term (3 to 6 months) duration from the trend start.

Table 7: Short (S) Medium (M) or Long (L) Trend Start and Performance
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternS63% M19% L25%S49% M11% L21%
Buy busted patternS22% M59% L4%S21% M45% L2%

Top of page

Moving Averages: 50- and 200-Day SMA

I checked two moving averages at buy time, 50- and 200-day simple moving averages (not as a crossover setup). I compared the breakout price to the value of the moving average. Table 8 shows the performance of buying or selling busted or non-busted patterns when the breakout price was above (A) or below (B) the 50-day simple moving average (SMA).

Buy falling wedges when the breakout price is above the 50-day SMA.

Table 8: Above (A) Below (B) 50-Day Simple Moving Average
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternA77% B24%A55% B19%
Buy busted patternA41% B-10%A38% B-9%

Table 9 shows the results of using a longer moving average, the 200-day. Traders often use this as a proxy for the long-term trend.

Falling wedges worked best if the breakout price was above the 200-day SMA.

Table 9: Above (A) Below (B) 200-Day Simple Moving Average
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternA64% B25%A44% B21%
Buy busted patternA29% B13%A31% B2%

Top of page

Selling First Bearish Chart Pattern

The prior discussion assumes you buy a falling wedge (busted or non-busted) but sell a chart pattern of your choosing, such as a downward breakout from a head-and-shoulders top (you wait for one to appear). What if you sold the first bearish chart pattern which comes along? How would you do?

Table 10 shows the results sorted by the type of patterns involved (busted or non-busted). For example, if you buy a non-busted falling wedge and sell the first non-busted chart pattern which comes along, you'd make 17% on average. Annualized, you'd make 58%. This compares to a 34% annualized gain if you sell a designated pattern (like you waited for a double top before selling, which may or may not be the first bearish chart pattern to come along).

In three of four categories (table cells), selling the first chart pattern which appears will work better than selling a designated pattern. The only configuration where selling a designated pattern works better is to buy a non-busted falling wedge and sell the first busted pattern which appears. That makes 8% annually versus 24% when selling a designated pattern (like waiting for a double top to appear).

The bottom half of the table shows expectancy for the four combinations. Selling non-busted patterns almost tie for the highest expectancy ($1.54 or $1.56).

The results suggest that selling the first non-busted pattern which comes along will provide the best profit potential.

Table 10: Selling the First Bearish Pattern (Annualized)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern17% (58% v 34%)2% (8% v 24%)
Buy busted pattern10% (21% v 13%)6% (12% v 10%)
Expectancy (Below)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern$1.56$0.04
Buy busted pattern$1.54$-0.21

-- Thomas Bulkowski

Top of page

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer