As of 05/18/2022
  Indus: 31,490 -1,164.52 -3.6%  
  Trans: 13,692 -1,096.25 -7.4%  
  Utils: 992 -9.94 -1.0%  
  Nasdaq: 11,418 -566.37 -4.7%  
  S&P 500: 3,924 -165.17 -4.0%  
YTD
-13.3%  
-16.9%  
 +1.1%  
-27.0%  
-17.7%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow15,500 or 13,700 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22
As of 05/18/2022
  Indus: 31,490 -1,164.52 -3.6%  
  Trans: 13,692 -1,096.25 -7.4%  
  Utils: 992 -9.94 -1.0%  
  Nasdaq: 11,418 -566.37 -4.7%  
  S&P 500: 3,924 -165.17 -4.0%  
YTD
-13.3%  
-16.9%  
 +1.1%  
-27.0%  
-17.7%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow15,500 or 13,700 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22

Bulkowski on Pattern Pairs: Right-Angled and Descending Broadening Formations

 

Initial release: 12/15/2021.

Because "right-angled and descending broadening formation" is so long, I've abbreviated it to RABFD.

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 RABFDs: 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 RABFD or a busted one (price breaks out downward, drops no more than 10%, reverses, and closes above the top of the pattern. Buy as price rises above the top of the pattern).

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.

Sell a... (unless otherwise noted)

To improve performance, try these tips.

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Trading RABFDs: 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 RABFD 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.

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Trading RABFDs: 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 RABFDs and sold various non-busted patterns (ascending triangles, broadening tops, head-and-shoulders tops, and so on), I made an average of 41% ("Stop Loss Only" column) after having a stop loss order in place. Losses averaged 11%. 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, 27%, but losses climbed to 12%. If I didn't use any type of stop, the gain averaged 112% with losses averaging 29%.

The results show that trades which do not use a stop make the most money but losses are huge. Buying 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%)  12% (-8%)  18% (-11%)  27% (-12%)  41% (-11%)  112% (-29%) 
Busted buys, non-busted sales 5% (-9%)  9% (-9%)  17% (-10%)  19% (-15%)  22% (-9%)  99% (-33%) 
Non-busted buys, busted sales 6% (-5%)  11% (-8%)  18% (-11%)  23% (-13%)  34% (-10%)  109% (-25%) 
Busted buys, busted sales 5% (-8%)  9% (-9%)  18% (-9%)  19% (-14%)  22% (-8%)  99% (-33%) 

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Trading RABFDs: 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.

I found that the highest rate of success for busted patterns was 36%. If you used a non-busted RABFD for buying and sold a busted pattern (of your choice), you'd have a successful trade about a third of the time.

According to the contest results, do not trade using busted chart patterns.

Table 2: Busted or Non-Busted Contest Winners
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternN/A (benchmark)36%
Buy busted pattern16%14%

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Trading RABFDs: Non-busted Buy, Non-Busted Sale

Picture of a busted pattern pair.

Table 3 shows statistics I collected for RABFDs 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 RABFD 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 41% on the 192 (42 winners, 150 losers) trades. That's an average of 231% on your winners, 12% average loss on your losers. You'd find that only 22% of the trades made money but you'd gain an average of 18% per year (ranking 16th 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 more than double your money (121% per trade).

The expectancy averaged $2.07 per share per trade which ranks 57th 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 RABFDs
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom231%-12%41%18%16121%42/15022%$2.0757
Broadening top175%-11%34%15%34108%94/29224%$3.2540
Broadening formation, right-angled and ascending144%-13%32%16%2783%50/12529%$2.5953
Broadening formation, right-angled and descending85%-12%11%7%7243%33/10923%$0.2379
Broadening wedge, ascending242%-12%78%36%1129%41/7436%$4.6721
Broadening wedge, descending138%-12%39%17%2681%22/4334%$4.3723
Bump-and-run reversal top111%-10%37%18%1896%125/19539%$4.6720
Diamond bottom128%-11%33%16%3170%21/4631%$3.0244
Diamond top141%-9%41%20%9100%43/8534%$5.0914
Adam & Adam double top285%-10%61%22%5189%184/57624%$7.046
Adam & Eve double top354%-11%68%28%3183%74/26522%$7.095
Eve & Adam double top225%-11%48%20%8126%91/26925%$5.7110
Eve & Eve double top163%-11%28%12%43112%89/30822%$3.1142
Falling wedge66%-13%3%2%8748%19/7620%-$1.4288
Head-and-shoulders top190%-11%48%19%14117%385/92030%$5.799
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top78%-12%17%8%6864%65/14132%$2.6752
Rectangle top208%-10%40%17%24107%50/16723%$4.8918
Rising wedge131%-11%27%16%2990%105/28527%$2.1856
Rounding top257%-10%60%21%7112%54/15226%$4.9615
Ascending scallop110%-12%24%12%4544%27/6430%$1.8065
Descending scallop153%-12%47%17%22100%204/36836%$4.1026
Scallop, inverted and ascending101%-12%13%6%7674%13/4622%$1.4270
Scallop, descending and inverted130%-11%27%13%4247%100/27327%$1.3273
Triangle, ascending177%-12%33%15%3593%52/16524%$3.6630
Triangle, descending207%-11%46%22%4105%56/15726%$2.7847
Triangle, symmetrical174%-11%45%17%21116%183/42430%$3.9227
Triple top166%-11%38%16%28120%282/73528%$4.3324
Rectangle bottom107%-11%12%6%7537%27/11020%$0.0381
3 falling peaks167%-11%41%17%25106%326/78729%$3.5432
Roof72%-10%14%6%73100%17/4129%$2.5854
Roof, inverted121%-11%26%10%5782%25/6528%$3.7729
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading RABFDs: 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 RABFD in a bull market), buy. Sell after a downward breakout from the target chart pattern.

Table 4 shows the performance of busted RABFDs 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 pattern (after buying).

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

For example, buying a RABFD with a busted downward breakout in a bull market (the entry price is really the higher of a penny above the top of the pattern or the opening price) and selling after the downward breakout from a broadening top shows winners averaging gains of 102%. Losses average 11%, for a net of 3%. Only 49 trades occurred with a win/loss ratio of 12%. This scenario ranks the annualized net gain as 85th among the four tables. If you traded this as a buy-and-hold position, meaning no stops were used, the net gain climbed to 69%. Expectancy was a loss of $0.54 per share, ranking 84th where 1 is best. Because the expectancy is negative, you wouldn't want to trade this pattern pair.

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 bottom102%-11%3%2%8569%6/4312%-$0.5484
Broadening top100%-10%13%9%6272%19/7321%$1.2775
Broadening formation, right-angled and ascending149%-8%24%18%1778%8/3121%$3.0443
Broadening formation, right-angled and descending226%-9%33%85%5/2318%
Broadening wedge, ascending182%-8%35%70%5/1723%
Broadening wedge, descending96%-11%26%92%8/1535%
Bump-and-run reversal top105%-10%25%19%1590%22/5230%$3.3737
Diamond bottom123%-8%33%54%5/1131%
Diamond top106%-9%9%9%6695%5/2716%-$0.7286
Adam & Adam double top247%-8%48%18%19147%36/12722%$4.9616
Adam & Eve double top123%-8%16%8%6771%14/6418%$2.0459
Eve & Adam double top122%-9%18%9%6388%23/9020%$1.3274
Eve & Eve double top129%-9%24%14%39105%24/7624%$3.4534
Falling wedge125%-9%3%21%2/219%
Head-and-shoulders top110%-9%18%10%5598%67/22723%$1.8962
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top97%-8%12%6%7886%7/3118%$1.3571
Rectangle top141%-9%30%15%3279%13/3726%$1.8564
Rising wedge133%-9%23%13%4070%19/6423%$1.9061
Rounding top192%-10%38%17%2376%10/3224%$2.7549
Ascending scallop102%-10%11%64%4/1818%
Descending scallop99%-10%7%5%81102%22/12515%$0.5277
Scallop, inverted and ascending134%-7%10%74%2/1512%
Scallop, descending and inverted28%-9%-2%-2%8932%13/6118%-$0.6585
Triangle, ascending71%-8%9%5%79121%11/4022%$1.3372
Triangle, descending81%-9%13%8%7075%12/3724%$1.7267
Triangle, symmetrical143%-8%21%11%5277%30/12719%$1.5869
Triple top110%-8%18%9%6598%49/17322%$2.0558
Rectangle bottom243%-9%47%17%2043%8/2822%$3.4035
3 falling peaks200%-9%41%19%11110%67/21024%$3.3538
RoofNone-7%-7%76%0/70%
Roof, inverted93%-10%22%70%5/1131%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading RABFDs: 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 RABFD 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 RABFD with an upward breakout in a bull market and selling a busted broadening bottom shows winning trades making an average of 111%. Losing trades lost 11% giving a net gain of 24%. The annualized gain is 9% in this case, giving the setup a rank of 60 (where 1 is best). If you traded this without a stop, the net gain climbed to 57%. Of the stocks I looked at, I found 74 trades with 28% of them winning. Expectancy was $1.74 per share, ranking 66th 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 bottom111%-11%24%9%6057%21/5328%$1.7466
Broadening top258%-11%62%28%2159%46/12427%$9.771
Broadening formation, right-angled and ascending114%-10%20%8%6963%14/4325%$6.227
Broadening formation, right-angled and descending94%-9%23%11%5380%26/5831%$2.3455
Broadening wedge, ascending110%-9%27%81%7/1630%
Broadening wedge, descending117%-10%20%9%6464%12/3924%$1.8663
Bump-and-run reversal bottom73%-10%5%2%86103%8/3718%-$0.4783
Cup with handle67%-10%-2%31%3/2610%
Diamond bottom64%-10%13%6%7478%11/2431%$4.8917
Diamond top121%-9%24%10%56100%16/4626%$7.922
Adam & Adam double bottom358%-11%71%21%6202%47/16522%$6.148
Adam & Eve double bottom138%-10%29%11%51113%42/12026%$3.3936
Eve & Adam double bottom171%-11%43%14%37121%33/7929%$3.6531
Eve & Eve double bottom107%-12%13%5%8065%22/8421%-$0.4082
Falling wedge90%-10%18%10%5880%15/3828%$3.0245
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders bottom234%-10%47%19%12145%67/21923%$5.2613
Head-and-shoulders complex bottom39%-10%3%1%8824%10/3025%$0.1080
Rectangle top145%-9%30%16%30124%30/8925%$2.7250
Rising wedge80%-10%11%8%7193%13/4522%$2.0260
Round bottom20%-10%-4%67%4/1521%
Rounding top63%-14%11%5%8252%10/2132%$3.3339
Ascending scallop139%-10%20%9%61106%15/6020%$3.1341
Descending scallop191%-8%69%19%1378%14/2239%$7.174
Scallop, inverted and ascending148%-9%36%15%36104%38/9329%$4.8219
Scallop, descending and inverted157%-9%41%12%4791%18/4230%$5.4512
Triangle, ascending59%-10%8%4%83124%24/6726%-$1.5989
Triangle, descending179%-9%43%20%10115%24/6328%$5.6511
Triangle, symmetrical144%-10%29%12%48117%87/25625%$3.5133
Triple bottom142%-11%31%11%49108%96/25727%$4.6322
Rectangle bottom129%-11%25%11%5070%17/4926%$0.4878
3 rising valleys164%-10%39%13%41116%63/16228%$3.7828
Roof279%-9%117%178%7/944%
Roof, inverted62%-10%15%6%77184%12/2235%$2.7848
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading RABFDs: Busted Buy, Busted Sale

Picture of a busted pattern pair.

Table 6 shows the last combination of trading statistics. It shows busted RABFDs 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 RABFD and selling a busted broadening top made 196% from the winners, lost 9% on the losers for a net gain of 29%. Annualized, it was 12%. The net gain placed the performance of this setup at 46, where a rank of 1 is best. Removing stops from the trades allowed them to make 100%. Only 38 trades were taken and 18% of them were winners. Expectancy was a gain of $1.10 per share, ranking 76th 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 bottom184%-8%40%67%4/1225%
Broadening top196%-9%29%12%46100%7/3118%$1.1076
Broadening formation, right-angled and ascending5%-7%-6%102%1/109%
Broadening formation, right-angled and descending43%-7%1%156%2/1017%
Broadening wedge, ascending74%-11%1%190%1/614%
Broadening wedge, descending30%-6%3%32%4/1127%
Bump-and-run reversal bottom32%-11%8%104%3/443%
Cup with handleNone-7%-7%-3%0/20%
Diamond bottom246%-11%99%131%3/443%
Diamond top75%-5%11%12%2/820%
Adam & Adam double bottom157%-8%32%10%5999%13/4124%$4.2025
Adam & Eve double bottom128%-8%37%15%33144%10/2033%$7.293
Eve & Adam double bottom133%-8%29%158%7/2026%
Eve & Eve double bottom55%-9%6%13%5/1723%
Falling wedge109%-8%7%94%2/1413%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders complex bottom28%-9%3%115%3/633%
Rectangle top182%-9%34%92%5/1723%
Rising wedge55%-8%13%2%3/633%
Round bottom70%-6%19%29%1/233%
Rounding top259%-12%56%33%1/325%
Ascending scallop90%-9%9%144%3/1418%
Descending scallopNone-12%-12%24%0/80%
Scallop, inverted and ascending113%-9%3%4%8438%3/2710%-$1.0287
Scallop, descending and inverted49%-8%11%39%5/1033%
Triangle, ascending257%-9%22%74%2/1512%
Triangle, descending42%-8%0%58%3/1616%
Triangle, symmetrical119%-7%29%12%4479%22/5628%$2.9446
Triple bottom123%-8%25%11%54102%20/5925%$2.7251
Rectangle bottom46%-9%-5%-10%1/137%
3 rising valleys146%-9%28%14%3894%15/4824%$1.7068
Roof117%-5%56%125%2/250%
Roof, inverted5%-6%-5%22%1/713%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading RABFDs: 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 long-term (more than 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 patternS55% M47% L20%S51% M38% L15%
Buy busted patternS1% M39% L57%S4% M17% L52%

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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 busted RABFDs 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 patternA41% B41%A34% B35%
Buy busted patternA28% B-4%A27% B-2%

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.

Buy non-busted RABFDs when the breakout price is below the 200-day SMA and busted RABFDs when the breakout price is above the SMA.

Table 9: Above (A) Below (B) 200-Day Simple Moving Average
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternA40% B46%A31% B49%
Buy busted patternA26% B-3%A26% B-4%

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Selling First Bearish Chart Pattern

The prior discussion assumes you buy an RABFD (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 RABFD and sell the first non-busted chart pattern which comes along, you'd make 14% on average. Annualized, you'd make 28%. This compares to a 17% 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 table cells, selling the first bearish chart pattern which appears will give larger profit.

The bottom half of the table shows expectancy for the four combinations. Selling non-busted patterns gives the highest expectancy of profit.

Table 10: Selling the First Bearish Pattern (Annualized)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern14% (28% v 17%)6% (13% v 14%)
Buy busted pattern13% (31% v 12%)6% (13% v 11%)
Expectancy (Below)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern$1.83$0.25
Buy busted pattern$1.65$0.51

-- Thomas Bulkowski

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Chart Patterns: After the Buy

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