As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 |
As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
Initial release on 7/3/2019. Stats updated on 8/27/2020.
 Extended V-bottoms
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The price target is the high at the start of the pattern.
The above numbers are based on 288 perfect trades. See the glossary for definitions.
I programmed my computer to find V-bottoms because to do it any other way would be unfair. I'd pick the patterns which worked and would not see those which didn't.
Some of the guidelines shown in the table reflect the automation.
| Characteristic | Discussion |
| Downtrend | Look for price to make a straight-line run downward with few or no pauses, often fitting inside a channel. |
| Width | At least 3 weeks to 3 months wide. |
| Reversal | Price at the bottom of the V will form a one-day reversal, island reversal, or tail, usually on heavy volume, perhaps gapping upward. |
| Trendline | After the reversal, price pierces a down-sloping trendline drawn along the price tops, confirming the trend change. |
| Extension | The extended V bottom is a variation on the v-bottom. After price reverses at the bottom, price climbs for a bit then moves sideways before continuing higher. |
| Retrace | Price on the right side must retrace at least 38.2% of the left side, but be flexible. The retrace value is arbitrary. |
| Breakout | The right side of the V forms a peak. When price closes above this peak, that's the breakout signal. |
| No Spike | I removed any extended V-bottom with a single long price bar as the bottom. |
| Angle | Price drops and reverses, forming an angle with the vertical. In some extended V-bottoms, the left angle will mirror the right one. For example, if price dropped by 30 degrees, price might rise following a similar angle. |
Trade an extended V bottom once price exits the extension, but you can also get in at the breakout, which is a 38.2% retrace of the left side peak to valley drop. Expect price to approach the price level of the left side of the V (where the decline started), but that could be wishful thinking.
The above figure shows an example of an extended V bottom chart pattern. The decline into the pattern is unusually steep, meaning it cannot last long, and it doesn't. Price rebounds in a V-shape and then levels out, forming the extension. The extension appears on the chart as a descending triangle -- a flat base with down-sloping top in this example, but the extension can take any shape. The breakout from this congestion pattern is upward and that means a powerful move up, retracing much of the drop leading into the V bottom.
-- Thomas Bulkowski
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