As of 04/24/2024
Indus: 38,461 -42.77 -0.1%
Trans: 15,078 -358.61 -2.3%
Utils: 893 +6.79 +0.8%
Nasdaq: 15,713 +16.11 +0.1%
S&P 500: 5,072 +1.08 +0.0%
|
YTD
+2.0%
-5.2%
+1.3%
+4.7%
+6.3%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/24/2024
Indus: 38,461 -42.77 -0.1%
Trans: 15,078 -358.61 -2.3%
Utils: 893 +6.79 +0.8%
Nasdaq: 15,713 +16.11 +0.1%
S&P 500: 5,072 +1.08 +0.0%
|
YTD
+2.0%
-5.2%
+1.3%
+4.7%
+6.3%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
My book,
Trading Classic Chart Patterns
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$ $ $
If you know what a rectangle chart pattern looks like, then you know what a flat base is.
Look for a price area in which the stock touches the same value multiple times over several weeks or months, often
moving within a trading range. Price bounces between the upper and lower boundaries. Flat bases are rare but when they do occur, they can lead to powerful rallies.
Many chart patterns appear at a price just below the base, like a pothole in a road. The figure shows an example of this pothole pattern holding a diamond bottom after a flat base.
A gap occurs when yesterday's high is below today's low (bull gap) or yesterday's low is above today's high. Use the breakout day to see if price gapped from the prior day. If price has not broken out yet, then assume a gap will not occur. The figure shows an example of a breakout day gap from a diamond chart pattern.
Look at your triple bottom and determine whether bottom 3 is above, equal to, or below bottom 2. Research shows that in
a triple bottom, price rises higher when the low price at bottom 3 is above the low price at bottom 2.
A horizontal consolidation region is a congestion area marked by a flat top, flat bottom, or both, or prices that
share a common value. It is a support or resistance area, any area in which price moves horizontally. A HCR only occurs from the trend start to the start of the chart pattern. Thus, if a symmetrical triangle has price trending up to the triangle and the breakout is up, a HCR will not matter. For a downward breakout, you would score an HCR if one exists. I usually assume that a HCR will be in the way of the stock unless the breakout is at a new high.
The figure shows an example of overhead resistance. If the breakout were downward, then you would look for underlying support -- anything that might cause price to stop or reverse.
Figure 1
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Figure 2
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A neckline joins the armpits of a head-and-shoulders chart pattern. Figure 1 shows a neckline sloping up (in red) and Figure 2 shows the red neckline sloping down.
Is the left shoulder low above the right shoulder low? Patterns with even shoulder lows perform best but
they are rare. The figure to the left shows the left shoulder low is above the right one.
Which shoulder is higher? A higher left shoulder suggests better performance. The figure shows a lower left shoulder.
A throwback occurs when price breaks out upward and returns to or comes close to the
breakout price within a month. A pullback is the same, but the breakout is downward. I
always assume a throwback or pullback will occur.
The figure shows an example of a throwback. When a throwback or pullback occurs, performance suffers. Thus, look for overhead resistance or underlying support that might cause price to reverse direction. When scoring a chart pattern, assume a throwback or pullback will occur unless price is making a new high.
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Figure 3
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Figure 4
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-- Thomas Bulkowski
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