As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
Statistics updated 8/26/2020.
My book,
Encyclopedia of Chart Patterns
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
$ $ $
The roof pattern is one I discovered in early 2005. I thought of it as a half diamond but a friend called it a roof pattern and that's more descriptive. This pattern is rare and the performance isn't good either.
Roof Chart Pattern
|
The above numbers are based over 300 perfect trades. See the glossary for definitions.
| Characteristic | Discussion |
| Daily or weekly chart | I used the daily chart to locate roof patterns, but they may appear on other timeframes as well. |
| Price trend | Usually upward leading to the pattern. |
| Shape | Has a horizontal or near horizontal bottom with up sloping trend in the first part of the pattern followed by a down-sloping trend in the last part of the pattern. |
| Uptrend | The best performing roof patterns appear after a sharp rise like you sometimes see in diamond patterns. |
| Symmetrical | The two halves of the roof should appear symmetrical. Allow variations, but most look like an inverted V with price touching the horizontal bottom (in minor low) at least three times. |
| Head-and-shoulders top | Make sure the pattern isn't a head-and-shoulders top or a complex head-and-shoulders top. |
| Confirmation | The pattern confirms as valid when price closes outside the trendline boundary. The breakout can be in any direction. |
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | Reference the Measure Rule figure to the right. Compute the height (the difference between the roof's high, A, and the low, B) and then multiply it by the above 'percentage meeting price target.' Subtract the result from the lowest low in the pattern (B) to get a target. The Measure Rule figure to the right shows the measure for a downward breakout. | |
| Downtrends | The best performing roofs appear in downtrends, but they will be rare. | |
| Confirmation | Wait for confirmation before placing a trade because the breakout can be in any direction (downward predominates at 58% of the time). | |
| Pullbacks | Pullbacks hurt performance. | |
| Height | Tall patterns outperform short ones. Measure the height from highest peak to the horizontal bottom and divide it by the price of the horizontal bottom (the breakout price). Height to breakout price values over 8.7% (for downward breakouts, 9.2% for upward breakouts) are considered tall. |
The above figure shows an example of a roof chart pattern. Aren't you impressed?
Price crosses the pattern from top to bottom, touching a horizontal trendline at least three times in minor lows.
In this example the upward breakout occurs when price closes above the down-sloping trendline.
-- Thomas Bulkowski
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 notice for paid links: "As an Amazon Associate I earn from qualifying purchases."
|
My Stock Market Books
|
My Novels
|
We make a living by what we get, but we make a life by what we give.
on 