Bulkowski on Scoring Diamond Tops and Bottoms

Written by and copyright © 2005-2024 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 the registered trademarks of their respective owners.

My book, Trading Classic Chart Patterns, pictured on the right, has additional details on this scoring system.

If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. -- Tom Bulkowski

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This page scores diamond tops and diamond bottoms chart patterns with downward breakouts only. Patterns with scores above 0 show declines averaging 28%. Scores below 0 show declines of 13%. High scores do not guarantee good performance, nor does a low score mean you found a stinker.

Scoring for Diamond Tops and Bottoms

Please provide the following information:

Breakout direction... Down (only downward breakouts are scored) What is the highest price in the chart pattern? What is the lowest price in the chart pattern? What is the highest price for the stock over the last 52 weeks? What is the lowest price for the stock over the last 52 weeks? How many shares of stock are outstanding? What is the (anticipated) breakout price (use trendline pierce price)? Trend start: How long is the price trend leading to the start of the chart pattern? 0-3 months 3-6 months Over 6 months Horizontal consolidation region: Is underlying support in the way of price movement? Yes No Pullbacks: Do you think a pullback will occur (usually answer Yes)? Yes No Gaps: Did a gap occur on the breakout (if no breakout yet, answer No)? Yes No Market trend: Is the general market trending up or down? Up Down -- Thomas Bulkowski   More

Enter Symbol Chart Quote This loads yahoo!finance then use the Key Statistics link to find the 52-week high, low, and shares outstanding.

See Also

• This is the link for diamond bottoms.
• ...And tops.
• Trading techniques quiz. Test your entry and exit skills by taking this quick test.
• How to pick stocks, part 1.
• Premature buying. Learn how to prevent buying too soon.
• Stocks that double. Discover what attributes they share.
• 10-baggers. Find 10-baggers using fundamental analysis.
• 3 tips to help you pick stocks.
• 12 tips for stock selection.

Written by and copyright © 2005-2024 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 the registered trademarks of their respective owners. You never know how many friends you have until you rent a house on the beach.