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: Rectangle Bottoms

 

Initial release: 12/17/2021.

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 Rectangle Bottoms: 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 rectangle bottom 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).

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.

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Trading Rectangle Bottoms: 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 rectangle bottom 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 Rectangle Tops: 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 rectangle bottoms and sold various non-busted patterns (ascending triangles, broadening tops, head-and-shoulders tops, and so on), I made an average of 80% ("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, 33%, but losses climbed to 14%. If I didn't use any type of stop, the gain averaged 198% with losses averaging 30%.

The results don't show a clear trend among the rows, columns and type (busted or non-busted).

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%)  11% (-8%)  19% (-11%)  33% (-14%)  80% (-11%)  198% (-30%) 
Busted buys, non-busted sales 5% (-6%)  12% (-9%)  25% (-11%)  40% (-13%)  56% (-8%)  133% (-40%) 
Non-busted buys, busted sales 8% (-5%)  12% (-8%)  19% (-12%)  31% (-14%)  84% (-10%)  206% (-28%) 
Busted buys, busted sales 5% (-5%)  13% (-8%)  26% (-12%)  38% (-13%)  63% (-8%)  150% (-39%) 

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Trading Rectangle Bottoms: 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 45%. If you bought a non-busted rectangle bottom and sold a busted pattern, that combination would only succeed 45% of the time over the non-busted buy and non-busted sale combination.

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)45%
Buy busted pattern23%27%

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Trading Rectangle Bottoms: Non-busted Buy, Non-Busted Sale

Picture of a busted pattern pair.

Table 3 shows statistics I collected for rectangle bottoms 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 rectangle bottom 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 99% on the 185 (56 winners, 129 losers) trades. That's an average of 350% on your winners, 10% average loss on your losers. You'd find that only 30% of the trades made money but you'd gain an average of 38% per year (ranking 19th 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 almost triple your money (184% per trade).

The expectancy averaged $3.18 per share per trade which ranks 78th 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 rectangle bottoms
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Broadening bottom350%-10%99%38%19184%56/12930%$3.1878
Broadening top340%-10%93%38%18186%95/22929%$16.049
Broadening formation, right-angled and ascending246%-9%56%29%51160%43/12526%$2.4283
Broadening formation, right-angled and descending274%-10%64%28%5898%31/8826%$5.5645
Broadening wedge, ascending352%-9%93%54%4260%26/6628%$3.5576
Broadening wedge, descending180%-9%48%25%68102%20/4730%$4.1762
Bump-and-run reversal top199%-10%65%37%24150%124/22236%$8.2724
Diamond bottom246%-11%59%23%7492%10/2727%$5.6144
Diamond top252%-8%71%38%16188%37/8431%$4.1064
Adam & Adam double top568%-9%142%48%7300%186/52226%$15.2410
Adam & Eve double top388%-10%78%37%25191%71/25122%$11.8312
Eve & Adam double top318%-10%75%29%54225%89/25626%$5.6643
Eve & Eve double top552%-10%145%63%1228%105/27727%$19.425
Falling wedge479%-8%134%57%2201%24/5829%$16.938
Head-and-shoulders top340%-9%86%38%20201%311/83027%$6.2039
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top145%-10%36%18%8989%65/15530%$4.4459
Rectangle top193%-9%47%21%7982%66/17527%$4.1065
Rising wedge284%-9%83%38%22167%99/21631%$8.3323
Rounding top219%-11%47%19%82124%47/13925%$4.5256
Ascending scallop207%-12%49%28%55141%20/5228%$3.6673
Descending scallop277%-10%74%34%35157%178/43129%$4.5257
Scallop, inverted and ascending277%-10%79%26%65204%17/3831%$4.8452
Scallop, descending and inverted233%-10%46%24%70129%76/24923%$5.8042
Triangle, ascending269%-9%78%38%21184%62/13531%$6.2238
Triangle, descending282%-10%82%36%28117%59/12832%$4.8353
Triangle, symmetrical293%-10%66%29%52156%152/45425%$5.0351
Triple top313%-9%71%32%41159%256/77225%$9.3218
Rectangle bottom354%-11%77%37%23109%39/12224%$1.6989
3 falling peaks295%-10%74%32%42193%309/81727%$5.1550
Roof464%-9%84%52%5195%12/4920%$2.7081
Roof, inverted149%-11%35%16%94145%23/5828%$3.8271
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading Rectangle Bottoms: 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 rectangle bottom in a bull market), buy. Sell after a downward breakout from the target chart pattern.

Table 4 shows the performance of busted rectangle bottoms 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 rectangle bottom 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 rectangle bottom 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 bottom shows winners averaging gains of 325%. Losses average 8%, for a net of 55%. Annualized that's 32% (ranking 44th). Only 58 trades occurred with a win/loss ratio of 19%. If you traded this as a buy-and-hold position, meaning no stops were used, the net gain climbed to 130%. Expectancy was a gain of $2.09 per share, ranking 84th where 1 is best.

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 bottom325%-8%55%32%44130%11/4719%$2.0984
Broadening top315%-7%55%31%46135%17/7119%$6.4635
Broadening formation, right-angled and ascending209%-8%32%23%73146%11/4819%$1.8386
Broadening formation, right-angled and descending263%-7%55%26%6666%9/3023%$5.2548
Broadening wedge, ascending228%-9%67%128%9/1932%
Broadening wedge, descending262%-6%48%20%8175%6/2420%$3.0779
Bump-and-run reversal top204%-7%37%39%14117%24/9021%$1.8287
Diamond bottom589%-9%154%191%3/827%
Diamond top217%-7%41%31%47175%8/2922%$2.7280
Adam & Adam double top449%-8%89%36%27205%50/18721%$8.3821
Adam & Eve double top454%-8%91%39%15325%23/8421%$9.6617
Eve & Adam double top372%-7%70%31%45217%21/8220%$3.8570
Eve & Eve double top341%-7%66%36%30156%22/8321%$7.8427
Falling wedge460%-6%38%34%34117%3/299%$0.1093
Head-and-shoulders top209%-7%39%25%67165%82/30321%$4.0866
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Head-and-shoulders, complex top289%-8%48%40%13111%13/5619%$1.4192
Rectangle top197%-7%50%23%72107%24/6228%$4.3361
Rising wedge175%-7%48%31%48155%36/8430%$3.9267
Rounding top256%-7%41%21%76198%12/5318%$4.8154
Ascending scallop74%-7%16%17%9260%9/2328%$1.5391
Descending scallop159%-7%33%19%85105%58/17924%$6.8831
Scallop, inverted and ascending573%-8%126%179%6/2023%
Scallop, descending and inverted339%-7%53%43%11116%22/10617%$1.6390
Triangle, ascending244%-9%49%27%61162%10/3423%$5.9641
Triangle, descending196%-8%20%19%8662%8/5114%-$0.4295
Triangle, symmetrical290%-7%59%33%37144%40/14022%$5.4947
Triple top273%-7%52%26%63135%74/27521%$3.9069
Rectangle bottom242%-8%42%18%9053%10/4020%$9.9515
3 falling peaks319%-7%84%33%36160%118/30628%$7.3629
Roof72%-8%11%95%4/1324%
Roof, inverted106%-7%21%71%5/1525%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading Rectangle Bottoms: 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 rectangle bottom 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 rectangle bottom with an upward breakout in a bull market and selling a busted broadening bottom shows winning trades making an average of 237%. Losing trades lost 9% giving a net gain of 57%. The annualized gain is 18% in this case, giving the setup a rank of 88 (where 1 is best). If you traded this without a stop, the net gain climbed to 143%. Of the stocks I looked at, I found 71 trades with 27% of them winning. Expectancy was $4.14 per share, ranking 63 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 bottom237%-9%57%18%88143%19/5227%$4.1463
Broadening top259%-9%70%25%69164%40/9629%$6.4436
Broadening formation, right-angled and ascending305%-10%65%22%75149%13/4224%$5.5046
Broadening formation, right-angled and descending210%-8%48%21%78134%17/4926%$3.7172
Broadening wedge, ascending243%-9%52%147%7/2224%
Broadening wedge, descending157%-8%39%17%91119%11/2828%$3.6674
Bump-and-run reversal bottom205%-8%47%63%6/1726%
Cup with handle81%-8%3%80%3/2113%
Diamond bottom711%-7%232%56%3374%11/2233%$18.196
Diamond top252%-7%29%19%83151%8/4914%$10.0514
Adam & Adam double bottom783%-9%115%44%10268%35/18816%$17.977
Adam & Eve double bottom637%-10%158%49%6251%33/9426%$36.701
Eve & Adam double bottom390%-9%69%28%57243%18/7420%$4.5258
Eve & Eve double bottom429%-10%107%37%26195%29/8027%$25.922
Falling wedge147%-9%21%17%9399%12/5119%$0.0294
Head-and-shoulders bottom288%-8%82%33%39147%65/14930%$11.6013
Head-and-shoulders complex bottom240%-8%83%30%4996%14/2437%$6.6633
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Rectangle top226%-8%66%26%64133%39/8432%$8.3522
Rising wedge156%-6%61%26%62134%16/2341%$6.6534
Round bottom297%-8%10%92%1/166%
Rounding top155%-9%28%20%8057%8/2723%$1.7988
Ascending scallop218%-9%70%28%56150%21/3935%$8.8619
Descending scallop239%-14%73%24%71126%13/2534%$4.3860
Scallop, inverted and ascending365%-10%128%44%9209%35/6037%$25.853
Scallop, descending and inverted221%-9%66%21%77169%17/3533%$6.7432
Triangle, ascending384%-10%110%42%12168%24/5530%$25.834
Triangle, descending318%-9%99%38%17160%30/6133%$7.8826
Triangle, symmetrical289%-8%80%32%40172%89/21130%$6.9930
Triple bottom377%-8%100%36%29202%93/23828%$8.4120
Rectangle bottom122%-9%10%9%9544%10/5815%$2.7082
3 rising valleys332%-9%78%32%43208%50/14725%$9.7616
Roof324%-7%50%80%4/1917%
Roof, inverted431%-9%104%35%31199%9/2626%$14.6711
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading Rectangle Bottoms: Busted Buy, Busted Sale

Picture of a busted pattern pair.

Table 6 shows the last combination of trading statistics. It shows busted rectangle bottoms 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 rectangle bottom and selling a busted broadening top made 325% from the winners, lost 7% on the losers for a net gain of 69%. Annualized, it was 33%. The net gain placed the performance of this setup at 38, where a rank of 1 is best. Removing stops from the trades allowed them to make 237%. Only 57 trades were taken and 23% of them were winners. Expectancy was a gain of $1.84 per share, ranking 85th 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 bottom62%-8%2%87%2/1313%
Broadening top325%-7%69%33%38237%13/4423%$1.8485
Broadening formation, right-angled and ascending334%-8%106%156%4/833%
Broadening formation, right-angled and descending165%-9%33%107%5/1624%
Broadening wedge, ascending19%-9%-4%113%1/517%
Broadening wedge, descending110%-8%21%205%2/625%
Bump-and-run reversal bottom397%-6%151%224%7/1139%
Cup with handle1781%-5%218%254%1/713%
Diamond bottom457%-8%225%252%5/550%
Diamond top430%-7%108%160%5/1426%
Adam & Adam double bottom355%-7%44%19%84253%9/5414%$7.6928
Adam & Eve double bottom557%-8%122%46%8224%11/3723%$7.9325
Eve & Adam double bottom616%-8%81%34%32304%5/3014%$5.2249
Eve & Eve double bottom294%-7%81%29%53107%10/2429%$4.7355
Falling wedge83%-7%28%206%5/838%
Head-and-shoulders complex bottom105%-7%31%84%4/833%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank
Rectangle top162%-6%32%27%59109%10/3423%$3.5675
Rising wedge101%-5%19%135%6/2023%
Round bottom25%-6%2%-41%1/325%
Rounding top24%-11%1%9%1/233%
Ascending scallop364%-8%57%88%4/1917%
Descending scallop125%-9%8%72%2/1413%
Scallop, inverted and ascending186%-8%46%27%60124%13/3428%$6.3137
Scallop, descending and inverted335%-7%116%166%9/1636%
Triangle, ascending216%-7%35%103%5/2219%
Triangle, descending80%-7%15%101%6/1726%
Triangle, symmetrical215%-7%32%18%87103%19/8918%$3.4877
Triple bottom340%-6%72%34%33151%30/10223%$3.9068
Rectangle bottom217%-6%33%70%3/1418%
3 rising valleys284%-7%59%30%50167%19/6523%$6.1740
Roof917%-8%223%261%2/625%
Roof, inverted113%-6%13%50%2/1017%
Sell PatternAverage
Win
Average
Loss
NetAnnualized
Net
RankNo Stop
Net
Win/Loss
Samples
Win
Loss
Average
Expectancy
Expectancy
Rank

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Trading Rectangle Bottoms: 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.

Buy non-busted patterns with a short-term (up to 3 months) duration from the trend start to the pattern's start. When buying busted patterns, use the medium term (3 to 6 months)

Table 7: Short (S) Medium (M) or Long (L) Trend Start and Performance
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternS104% M53% L3%S113% M54% L4%
Buy busted patternS59% M81% L29%S62% M116% L28%

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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 non-busted rectangle bottoms when the breakout price is above the 50-day SMA. Buying busted patterns below the 50-day SMA work well.

Table 8: Above (A) Below (B) 50-Day Simple Moving Average
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternA90% B73%A93% B77%
Buy busted patternA20% B74%A17% B89%

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.

In three of four table cells, buy rectangle bottoms when the breakout price is below the 200-day SMA.

Table 9: Above (A) Below (B) 200-Day Simple Moving Average
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted patternA73% B89%A84% B83%
Buy busted patternA35% B77%A33% B95%

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Selling First Bearish Chart Pattern

The prior discussion assumes you buy an rectangle bottom (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 rectangle bottom and sell the first non-busted chart pattern which comes along, you'd make 23% on average. Annualized, you'd make 51%. This compares to a 35% 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).

Selling the first pattern which comes along works only when selling non-busted patterns.

The bottom half of the table shows expectancy for the four combinations. Please note that the $5.15 expectancy uses only 28 samples.

Table 10: Selling the First Bearish Pattern (Annualized)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern23% (51% v 35%)11% (24% v 33%)
Buy busted pattern15% (41% v 30%)2% (8% v 31%)
Expectancy (Below)
 Sell Non-Busted PatternSell Busted Pattern
Buy non-busted pattern$3.18$0.25
Buy busted pattern$2.03$5.15

-- Thomas Bulkowski

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My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy

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