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Оглавление1 IntroductionFigure I.1 A double bottom signals a trade entry at D and an exit at the ult...
2 Chapter 1Figure 1.1 The pattern at A and B leads to a strong move higher.Figure 1.2 A diving board on the weekly scale leads to the stock climbing st...Figure 1.3 This diving board fails to act as expected.Figure 1.4 This diving board is on the daily chart.Figure 1.5 This U‐shaped pattern delivers a failure.Figure 1.6 A pothole setup happens after a drop and flat base.Figure 1.7 Here is a swing trade using a double bottom and a double top.Figure 1.8 Shown are three ways to trade a pullback.Figure 1.9 Here are two setups that work well for swing trading throwbacks....
3 Chapter 2Figure 2.1 A bearish AB=CD pattern correctly predicts a downward move in the...Figure 2.2 This bearish AB=CD pattern breaks out upward.Figure 2.3 Price is supposed to turn down at F, but the search for point D e...Figure 2.4 Jacob used the bearish AB=CD pattern to exit a trade.
4 Chapter 3Figure 3.1 This chart shows how a bullish AB=CD pattern sees price turn at D...Figure 3.2 Another example of a bullish AB=CD pattern with an upward breakou...Figure 3.3 This bullish AB=CD has price falling through the predicted turnin...Figure 3.4 George took a loss buying this AB=CD.
5 Chapter 4Figure 4.1 The five turns, X, A, B, C, and D, complete the bearish bat.Figure 4.2 This bearish bat sees price dip after D but still breaks out upwa...Figure 4.3 This bearish bat isn't bearish at all.Figure 4.4 Pete bought near the high and made a quick swing trade after D.
6 Chapter 5Figure 5.1 This bullish bat breaks out upward (at F) and makes a strong push...Figure 5.2 This bullish bat rises after point D, but breaks out downward at ...Figure 5.3 This bullish bat isn't bullish at all. Price fails to turn higher...Figure 5.4 This is a sample trade using a bullish bat.
7 Chapter 6Figure 6.1 This big M sees price rise up to peak B and drop from peak C, bot...Figure 6.2 This big M (BD) struggles to find a bottom between the two peaks ...Figure 6.3 Price fails to drop more than 5% after the downward breakout.Figure 6.4 Justin shorted this big M and lost money on the trade.
8 Chapter 7Figure 7.1 This big W sees price rise, but not very far.Figure 7.2 Price at F almost returns to the launch price, A.Figure 7.3 Price busts the upward breakout from this big W.Figure 7.4 John decided not to trade this big W because of overhead resistan...
9 Chapter 8Figure 8.1 A broadening bottom, specifically a five‐point reversal, so‐calle...Figure 8.2 Don't accept patterns with too much whitespace. This happens when...Figure 8.3 Where's the breakout?Figure 8.4 This broadening bottom breaks out downward, reverses, and busts t...Figure 8.5 A broadening bottom with five alternating touches. Expect an imme...
10 Chapter 9Figure 9.1 Two right‐angled ascending broadening formations bounded by a hor...Figure 9.2 Price pulls back to the base of the formation. Pullbacks occur of...Figure 9.3 Support and resistance areas on a weekly time scale. They appear ...Figure 9.4 The broadening formation breaks out downward, but the stock fails...Figure 9.5 Shown are price targets using half and full formation heights for...
11 Chapter 10Figure 10.1 A horizontal trendline drawn along the tops, and a down‐sloping ...Figure 10.2 Another descending broadening formation, but this one has an upw...Figure 10.3 The left descending broadening pattern shows a trendline rebound...Figure 10.4 AB is not a descending broadening formation.Figure 10.5 A descending broadening formation appears with price that fails ...Figure 10.6 This descending broadening pattern (left) results in a 5% failur...Figure 10.7 This descending broadening pattern has an upward breakout. To co...
12 Chapter 11Figure 11.1 A potential triple top changed into a broadening formation. The ...Figure 11.2 The broadening top has higher highs and lower lows as the price ...Figure 11.3 A weak example of a five‐point reversal or orthodox broadening t...Figure 11.4 Price in this broadening top moved horizontally for 6 months bef...Figure 11.5 Use the measure rule to compute the target price. First, compute...
13 Chapter 12Figure 12.1 An ascending broadening wedge has two up‐sloping trendlines that...Figure 12.2 The broadening feature of the wedge is clear in this chart. The ...Figure 12.3 A broadening formation fails to continue moving down, requiring ...Figure 12.4 An ascending broadening wedge that fails to continue moving down...Figure 12.5 This ascending broadening wedge trade led to an 87% gain.Figure 12.6 The measure rule as it applies to two ascending broadening wedge...
14 Chapter 13Figure 13.1 This descending broadening wedge acts as a consolidation of the ...Figure 13.2 This descending broadening wedge acts as a reversal of the inter...Figure 13.3 This descending broadening wedge is a consolidation pattern in a...Figure 13.4 This wedge is a failure according to the 5% rule. Price fails to...Figure 13.5 As described in the Sample Trade, Mary used the wedge's height p...
15 Chapter 14Figure 14.1 Upward momentum propels price higher during late 1993, then stal...Figure 14.2 Shown are various components of a bump‐and‐run reversal bottom. ...Figure 14.3 The bump height is less than twice the lead‐in height, a clue th...Figure 14.4 Consider waiting to buy the stock until after it breaks out upwa...Figure 14.5 This is a bump‐and‐run reversal that stopped rising within 15% o...Figure 14.6 This BARR bottom trade didn't work as expected.Figure 14.7 A bump‐and‐run reversal bottom failure in which John invested. H...Figure 14.8 A bump‐and‐run reversal bottom on a weekly scale. After the brea...
16 Chapter 15Figure 15.1 Price moved higher along the trendline in the lead‐in phase, jum...Figure 15.2 A bump‐and‐run reversal shown on a weekly chart. The potential B...Figure 15.3 A bump‐and‐run reversal with a rounded bump occurs 76% of the ti...Figure 15.4 Shown is a bump‐and‐run reversal with a pointed‐looking first bu...Figure 15.5 Shown is a bump‐and‐run reversal trendline and parallel warning ...Figure 15.6 As described in the Sample Trade, Jenny raised her sell price as...
17 Chapter 16Figure 16.1 This bearish butterfly is really bullish. Price continues the up...Figure 16.2 This bearish butterfly sees price drop from D and stall just bel...Figure 16.3 Price turned down at D but doesn't drop far when price continues...Figure 16.4 Susan decided to trade this bearish butterfly.
18 Chapter 17Figure 17.1 This bullish butterfly leads to a fast recovery.Figure 17.2 This bullish butterfly is at XABCD and has a downward breakout, ...Figure 17.3 This bullish butterfly fails to see price turn higher after D.Figure 17.4 Mary traded this bullish butterfly for a quick 12% profit.
19 Chapter 18Figure 18.1 A cloudbank lasts for years until the 2007–2009 bear market take...Figure 18.2 Two cloudbanks appear on this chart (A and D), with the first on...Figure 18.3 Price fails to recover after the bear market plunge.Figure 18.4 A 4‐month simple moving average provides a buy signal.Figure 18.5 An ugly double bottom provides a buy signal.
20 Chapter 19Figure 19.1 This bearish crab sees price tumble after D.Figure 19.2 This well‐behaved crab has a downward breakout.Figure 19.3 This bearish crab fails to see price drop far after turn D.Figure 19.4 Sandy ignored the bearish crab and used a pennant to trade this ...
21 Chapter 20Figure 20.1 This bullish crab forms an extended V‐bottom at turn D.Figure 20.2 This bullish crab shows a sustained uptrend after an upward brea...Figure 20.3 This bullish crab breaks out downward after climbing just 2% abo...Figure 20.4 Sam spotted this bullish crab but shorted the stock.
22 Chapter 21Figure 21.1 A bump‐and‐run reversal leads to a cup‐with‐handle formation. No...Figure 21.2 A cup‐with‐handle pattern flanked by other cup‐with‐handle patte...Figure 21.3 A cup‐with‐handle pattern on a weekly scale. The failure at 10% ...Figure 21.4 Shown is a 5% failure of a cup‐with‐handle pattern. Although pri...Figure 21.5 Here is an example of the measure rule in practice on the weekly...
23 Chapter 22Figure 22.1 An inverted cup‐with‐handle pattern appears along with dome‐shap...Figure 22.2 This inverted cup has a V‐shape and a handle that mirrors the cu...Figure 22.3 This inverted cup‐with‐handle has uneven rims and U‐shaped volum...Figure 22.4 This is not an inverted cup‐with‐handle because price fails to c...Figure 22.5 A large flat base before the start of the cup supported price an...Figure 22.6 As described in the Sample Trade, Samantha traded this inverted ...
24 Chapter 23Figure 23.1 A diamond bottom reversal. Volume typically recedes through the ...Figure 23.2 A diamond bottom with receding volume trend. Price quickly recov...Figure 23.3 Support areas for diamond bottoms are near the base of the patte...Figure 23.4 A diamond bottom acts as a continuation of the downward price tr...Figure 23.5 Overhead resistance blocks the upward breakout from this diamond...Figure 23.6 Shown are four combinations of single‐ and two‐diagonal configur...Figure 23.7 A diamond top (left) and a diamond bottom (right), both single‐d...
25 Chapter 24Figure 24.1 A good example of a diamond top. Notice that price quickly retur...Figure 24.2 This diamond top appeared when price was moving sideways.Figure 24.3 Support and resistance for the diamond appears at the top of the...Figure 24.4 This diamond top sees price continue higher.Figure 24.5 A valid diamond top breaks out downward, but price fails to desc...Figure 24.6 The predicted breakout direction for diagonal diamond patterns....Figure 24.7 Shown is a diamond top with dome‐shaped volume. To get a price t...
26 Chapter 25Figure 25.1 This diving board pattern leads to a large upward move. Note: we...Figure 25.2 Note: weekly scale. The bottom of this board (A) is flat followe...Figure 25.3 Note: weekly scale. A number of potential diving board patterns ...Figure 25.4 Note: weekly scale. A diving board trade resulted in a small pro...Figure 25.5 Note: weekly scale. Rich made a trade using a diving board patte...
27 Chapter 26Figure 26.1 An Adam & Adam double bottom with twin spikes, volume heavier on...Figure 26.2 An Adam & Adam double bottom with a throwback. Pattern AB (upper...Figure 26.3 Shown are two Adam & Adam double bottoms. The horizontal lines a...Figure 26.4 An Adam & Adam double bottom confirmed when price closed above t...Figure 26.5 Example of second type of failure—failing to wait for breakout c...Figure 26.6 Randy traded this Adam & Adam double bottom, buying at the confi...
28 Chapter 27Figure 27.1 A tall one‐day downward price spike is the Adam bottom, and the ...Figure 27.2 This Adam & Eve double bottom appears as the corrective phase of...Figure 27.3 This double bottom happens after a downward price trend. The pat...Figure 27.4 Price confirms the breakout once it closes above the confirmatio...Figure 27.5 Example of a 5% failure. This type of failure occurs when price ...Figure 27.6 Double bottom trading dilemma. How do you trade this double bott...
29 Chapter 28Figure 28.1 A double bottom occurs after a downward price trend. High volume...Figure 28.2 The Eve bottom appears rounded and wider than the narrow and V‐s...Figure 28.3 The top of the Eve bottom is wider than the Adam bottom. Eve app...Figure 28.4 An Eve & Adam double bottom with volume higher on the right bott...Figure 28.5 This is a 5% failure, where price fails to climb much above the ...Figure 28.6 As described in the Sample Trade, Willie bought early into this ...
30 Chapter 29Figure 29.1 A broadening bottom leads to an Eve & Eve double bottom. The two...Figure 29.2 Points A and B do not depict a double bottom because there are l...Figure 29.3 These two Eve bottoms are wider and more rounded than the Adam b...Figure 29.4 Two minor lows compose the left Eve bottom, and the right bottom...Figure 29.5 Is this an Eve & Eve bottom or an Eve & Adam bottom, and why did...Figure 29.6 Price climbed just 9% after the breakout due to deteriorating fu...
31 Chapter 30Figure 30.1 An Adam & Adam double top has twin peaks that look similar with ...Figure 30.2 An Adam & Adam double top confirms when price closes below the c...Figure 30.3 Another example of an Adam & Adam double top, but price does not...Figure 30.4 An Adam & Adam double top within a complex head‐and‐shoulders to...Figure 30.5 A double top pattern that suffers a 5% failure. Price fails to c...Figure 30.6 The predicted drop from a double top didn't turn into a buy sign...Figure 30.7 The two sell trendlines provide an opportunity to sell the stock...
32 Chapter 31Figure 31.1 A double top has twin peaks that are usually a few months apart ...Figure 31.2 An Adam & Eve pattern forms in December and sends price back to ...Figure 31.3 Price does not push above this double top for over 3 years. A me...Figure 31.4 This Adam & Eve double top shows the difference between each pea...Figure 31.5 Price after the breakout from this Adam & Eve pattern fails to d...Figure 31.6 To use the measure rule, compute the height of the double top an...
33 Chapter 32Figure 32.1 This is a good example of an Eve & Adam double top, except for t...Figure 32.2 Two twin peaks confirm as Eve & Adam double tops when price clos...Figure 32.3 Support at point B and the many peaks in October through Novembe...Figure 32.4 An actual trade made 52% using a potential double top as a sell ...Figure 32.5 This Eve & Adam pattern had a quick rise followed by a quick dec...
34 Chapter 33Figure 33.1 The twin‐peak Eve tops become a valid Eve & Eve double top when ...Figure 33.2 Two peaks, similar in appearance, stand atop the price trend and...Figure 33.3 An Eve & Eve double top reverses the upward price trend. The pat...Figure 33.4 A common double top failure. Price declines after the second pea...Figure 33.5 Consider buying the stock once the decline completes. Sometimes,...
35 Chapter 34Figure 34.1 A flag bounded by two parallel trendlines usually has a receding...Figure 34.2 Two flags in different price trends help gauge the move from A t...Figure 34.3 This flag appears about midway in a downtrend.Figure 34.4 The failure of price to continue rising is probably due to two f...Figure 34.5 The AB run is longer than CD, meaning that the measure rule fail...Figure 34.6 Use the measure rule to gauge the decline in this stock. Take th...
36 Chapter 35Figure 35.1 A high, tight flag that sees price rise from about 30 to 120 in ...Figure 35.2 This high, tight flag looks loose, but price performs well, risi...Figure 35.3 A failure of a high, tight flag. Price fails to continue moving ...Figure 35.4 A high, tight flag with price stair‐stepping higher. How do you ...
37 Chapter 36Figure 36.1 Plenty of gaps appear in a daily price chart. The most numerous ...Figure 36.2 Various gap types with area gaps illustrating the hook feature. ...Figure 36.3 Gina bought the stock on the breakaway gap and sold it a few day...Figure 36.4 Bulkowski sold this stock after two gaps appeared.
38 Chapter 37Figure 37.1 This bearish Gartley sees price break out downward, and the drop...Figure 37.2 The bearish Gartley is at XABCD. Notice the minor dip after D an...Figure 37.3 The move from D to E is just 4%, making it difficult to short th...Figure 37.4 George traded this bearish Gartley like a normal chart pattern....
39 Chapter 38Figure 38.1 This bullish Gartley appears as turns XABCD.Figure 38.2 This bullish Gartley struggles to find a trend direction.Figure 38.3 Price fails to rise much after D, and the Gartley breaks out dow...Figure 38.4 Jacob bought after this Gartley completed but sold quickly.
40 Chapter 39Figure 39.1 A head‐and‐shoulders bottom. Two shoulder troughs surround a low...Figure 39.2 Head‐and‐shoulders bottom pattern on a weekly time scale. It tak...Figure 39.3 A rare head‐and‐shoulders consolidation of the primary uptrend....Figure 39.4 Failure of a head‐and‐shoulders bottom to stage an upward breako...Figure 39.5 A 5% failure in a head‐and‐shoulders bottom. Price must rise by ...Figure 39.6 A head‐and‐shoulders bottom. Compute the measure rule by subtrac...
41 Chapter 40Figure 40.1 A dual‐shoulder complex head‐and‐shoulders bottom. Notice the ho...Figure 40.2 A dual‐head reversal. Volume on the left side of the pattern is ...Figure 40.3 A complex head‐and‐shoulders consolidation. The trend resumes mo...Figure 40.4 A failure of the complex head‐and‐shoulders pattern to climb mor...Figure 40.5 This trade in a triple busted complex head‐and‐shoulders bottom ...Figure 40.6 Complex head‐and‐shoulders bottom on a weekly scale. For a price...
42 Chapter 41Figure 41.1 A head‐and‐shoulders top pattern where the center peak towers ab...Figure 41.2 Volume pattern of this head‐and‐shoulders top obeys the general ...Figure 41.3 A complex head‐and‐shoulders top pattern. The chart shows the wi...Figure 41.4 A rare head‐and‐shoulders consolidation. The pattern fails to co...Figure 41.5 The measure rule as it applies to a head‐and‐shoulders top. Calc...Figure 41.6 Bulkowski avoided watching profit disappear when this head‐and‐s...Figure 41.7 Head‐and‐shoulders top with steep neckline. There is no target p...
43 Chapter 42Figure 42.1 Complex head‐and‐shoulders top with dual heads. The stair‐step p...Figure 42.2 Typical complex head‐and‐shoulders reversal. Multiple shoulders ...Figure 42.3 A more rounded‐appearing complex head‐and‐shoulders top. Left sh...Figure 42.4 A complex head‐and‐shoulders failure to reverse. Price fails to ...Figure 42.5 Another failure of a complex head‐and‐shoulders top. This one fa...Figure 42.6 A complex head‐and‐shoulders top. For the measure rule, compute ...
44 Chapter 43Figure 43.1 A good example of a horn bottom. Two downward price spikes, sepa...Figure 43.2 Two examples of horns, one in a downward trend and one in an upt...Figure 43.3 A horn bottom failure. Among other clues, similar‐height price s...Figure 43.4 This horn bottom trade made 33% in a bear market.Figure 43.5 Horn bottom on weekly chart. As described in the Sample Trade, M...
45 Chapter 44Figure 44.1 Horn top showing twin peaks. The stock drops almost in half afte...Figure 44.2 Horn tops with unusually tall price spikes. This horn exceeds th...Figure 44.3 Horn top appearing after an extended downtrend. It is probably b...Figure 44.4 Two horn tops and Covid‐19 convinced Doug to sell his holding du...
46 Chapter 45Figure 45.1 A one‐day reversal, island bottom, and island top. You can see t...Figure 45.2 Several island reversals, some with short durations and some wit...Figure 45.3 Long island top that fails because price drops by less than 5%. ...Figure 45.4 An island bottom failure. Wait for price to close above the tren...Figure 45.5 A failed island bottom. Sometimes the best trade you can make is...
47 Chapter 46Figure 46.1 A typical measured move down. The slope of the trendline is simi...Figure 46.2 Notice how measured move ABCD has legs that fit inside channels....Figure 46.3 This potential measured move down fails to see price drop in the...Figure 46.4 This measured move up led to a profitable trade.Figure 46.5 Measured move down followed by corrective phase. Eddy made $5 pe...
48 Chapter 47Figure 47.1 A measured move up. The second leg gain nearly matches the gain ...Figure 47.2 A falling wedge marks the corrective phase in this measured move...Figure 47.3 A measured move up that fails after turning into a double top.Figure 47.4 Measured move up with a symmetrical triangle. As described in th...
49 Chapter 48Figure 48.1 A pennant bounded by two converging trendlines looks like a shor...Figure 48.2 A short pennant forms after a quick price rise. The pennant slop...Figure 48.3 The downward price trend overshoots the small pennant on entry. ...Figure 48.4 This pennant looks like a small symmetrical triangle. Price brea...Figure 48.5 Here's a quick way to lose money trading a pennant.Figure 48.6 Use the measure rule to predict a price target. Take the differe...
50 Chapter 49Figure 49.1 A pipe bottom on the weekly chart. Pipes commonly form after a r...Figure 49.2 A pipe bottom on the weekly chart. Point A is another pipe botto...Figure 49.3 Pipe bottom failures (weekly chart). Clues to these two pipe fai...Figure 49.4 Pipe bottom with preceding brief price dip and following low ret...
51 Chapter 50Figure 50.1 The pipe on the left is not a pipe at all because price does not...Figure 50.2 This pipe top (weekly scale) appears during a retrace in a long‐...Figure 50.3 This pipe top forms near the end of a long symmetrical triangle ...Figure 50.4 This pipe top appeared at the end of a rise–retrace pattern that...
52 Chapter 51Figure 51.1 A rectangle bottom shows an intermediate‐term downtrend leading ...Figure 51.2 A rectangle bottom appears in a downtrend. Price falls out the b...Figure 51.3 This is a rectangle bottom failure in a downward price trend. Pr...Figure 51.4 A trade in this rectangle resulted in a profit.Figure 51.5 Rectangle bottom followed by upward breakout. The measure rule a...
53 Chapter 52Figure 52.1 Rectangle top with an upward breakout performs well in this uptr...Figure 52.2 A rectangle top with a receding volume trend. Although most rect...Figure 52.3 A 5% failure of a rectangle top. Price follows the existing tren...Figure 52.4 Rectangle top with breakaway and exhaustion gaps. Dave bought th...
54 Chapter 53Figure 53.1 This roof pattern appears in a downward price trend.Figure 53.2 This roof may look like a head‐and‐shoulders top, but the breako...Figure 53.3 Price breaks out upward from this roof but hits overhead resista...Figure 53.4 This roof leads to a big gain with dividends included.
55 Chapter 54Figure 54.1 This inverted roof occurs in a downtrend and has a downward brea...Figure 54.2 Price enters this inverted roof from the bottom and exits out th...Figure 54.3 This inverted roof fails to see a sustained upward price trend....Figure 54.4 This chart shows how a stock can return to the launch price.
56 Chapter 55Figure 55.1 A rounding bottom on the daily scale. The bottom takes a brief d...Figure 55.2 This chart is a good example of a rounding bottom on the weekly ...Figure 55.3 Rounding bottom that acts as a short‐term reversal of the trend....Figure 55.4 A treacherous example of a rounding bottom that has no left rim....Figure 55.5 Sometimes it can be difficult to find the left rim of a rounded ...Figure 55.6 The double bottom pattern is barely discernible within the round...
57 Chapter 56Figure 56.1 A rounding turn begins at point A and rounds over to end near th...Figure 56.2 Two rounding turns with the ends nearly at the same price. Both ...Figure 56.3 Overhead resistance blocks this rounding turn's upward breakout....Figure 56.4 A rounding top with a rising wedge. As described in the Sample T...
58 Chapter 57Figure 57.1 Three ascending scallops. Scallops resemble the letter J.Figure 57.2 Two ascending scallops, the first with an upward breakout and th...Figure 57.3 An ascending scallop failure in late June. Most scallops act as ...Figure 57.4 This ascending scallop led to a timely trade exit when the compa...Figure 57.5 Three consecutive ascending scallops. As described in the Sample...
59 Chapter 58Figure 58.1 After a long‐term uptrend, price retraces and forms the first sc...Figure 58.2 This scallop appears rounder if you connect the low prices inste...Figure 58.3 Notice how scallops become shorter and narrower as price rises....Figure 58.4 This is a valid pattern because it confirms, but the bearish tre...Figure 58.5 What is wrong with the highest scallop? The pattern never confir...Figure 58.6 As described in the Sample Trade, Robert bought the day after th...
60 Chapter 59Figure 59.1 Three descending scallops appear in a declining price trend. Not...Figure 59.2 Four consecutive descending scallops.Figure 59.3 Overhead resistance causes the July scallop to stall and eventua...Figure 59.4 This scallop fails to descend far after a downward breakout. Not...Figure 59.5 This trade ended in a loss.Figure 59.6 This descending scallop acts as a reversal of the upward price t...
61 Chapter 60Figure 60.1 A descending and inverted scallop appears as an upside‐down J.Figure 60.2 B and C mark the beginning and end of the scallop, not A or D.Figure 60.3 A pattern failure: Price at A should be well above B.Figure 60.4 As described in the Sample Trade, Rich shorted this stock and a ...
62 Chapter 61Figure 61.1 The three falling peaks chart pattern begins with the highest pe...Figure 61.2 Peaks A1, A2, and A3 form three falling peaks, as do B1, B2, and...Figure 61.3 Which of these patterns is a valid three falling peaks chart pat...Figure 61.4 After declining just 2% below point D, the stock rallies 58% fro...Figure 61.5 This busted three falling peaks pattern resulted in a sale just ...Figure 61.6 When price pierced trendline AB, it confirmed the three falling ...
63 Chapter 62Figure 62.1 This is the three peaks and domed house model.Figure 62.2 This three peaks and domed house has a few variations.Figure 62.3 The three peaks don't come close to sharing the same price in th...Figure 62.4 This is a more recent example of the three peaks and domed house...Figure 62.5 The absence of the test of point 10 suggests to use turn 4 or 6 ...
64 Chapter 63Figure 63.1 The three rising valleys chart pattern.Figure 63.2 Often, the three rising valleys chart pattern will appear in an ...Figure 63.3 Three rising valleys appear in a downward price trend. Price con...Figure 63.4 This three rising valleys chart pattern didn't work as expected....Figure 63.5 A three rising valleys pattern turned into a symmetrical triangl...
65 Chapter 64Figure 64.1 The horizontal top and up‐sloping trendline on the bottom mark t...Figure 64.2 Two views of an incorrectly identified ascending triangle. What ...Figure 64.3 This pattern is not a valid ascending triangle. There are not en...Figure 64.4 An excellent example of a correctly constructed ascending triang...Figure 64.5 There are two ways to set a price target for an ascending triang...Figure 64.6 Ascending triangle on the weekly time scale. The price rise gene...Figure 64.7 Trading an ascending triangle. As described in the Sample Trade,...
66 Chapter 65Figure 65.1 A nicely formed descending triangle with unusual volume pattern....Figure 65.2 The March triangle forms after a long climb beginning in late 19...Figure 65.3 This is not a descending triangle. There is too much whitespace ...Figure 65.4 This is an example of a busted pattern. A brief downward breakou...Figure 65.5 The measure rule: Take the difference between the two trendlines...Figure 65.6 As described in the Sample Trade, instead of opening a short pos...
67 Chapter 66Figure 66.1 A symmetrical triangle with a small price rise.Figure 66.2 A symmetrical triangle with an upward breakout. Price closes out...Figure 66.3 Two symmetrical triangles, one valid, the other invalid. The tri...Figure 66.4 An invalid symmetrical triangle. Price does not cross the patter...Figure 66.5 The symmetrical triangle on the left has an upward breakout that...Figure 66.6 Measure rule for symmetrical triangles. Use the measure rule to ...
68 Chapter 67Figure 67.1 This triple bottom forms the reversal portion of a Big W chart p...Figure 67.2 A triple bottom with three widely spaced, distinct troughs. A br...Figure 67.3 A triple bottom failure. This triple bottom fails to make a conv...Figure 67.4 Russell had high hopes for this triple bottom trade, but the sto...
69 Chapter 68Figure 68.1 A triple top has three peaks and a pullback usually follows. A h...Figure 68.2 This triple top shows three distinct widely spaced tops at nearl...Figure 68.3 Triple top reversal on the weekly scale. The triple top marks th...Figure 68.4 This is an example of a 5% failure where price fails to continue...Figure 68.5 A trade in a busted triple top didn't work as well as planned.Figure 68.6 Triple top with unconfirmed double bottom. As described in the S...
70 Chapter 69Figure 69.1 This is a good example of a V‐bottom that sees price climb.Figure 69.2 These two V‐bottoms appear in a downward trend. The left one fai...Figure 69.3 This V‐bottom fails to reach its potential.Figure 69.4 A V‐bottom trade made 35%, shown on the weekly scale.Figure 69.5 Dave bought this stock at the breakout and rode price higher.
71 Chapter 70Figure 70.1 This is what an ideal extended V‐bottom (ABC) looks like.Figure 70.2 This extended V‐bottom has a minor drop before the pattern compl...Figure 70.3 This extended V‐bottom doesn't see price rise much after the upw...Figure 70.4 This extended V‐bottom results in a two‐losing and one‐winning t...Figure 70.5 Jake makes 24% on this extended V‐bottom trade.
72 Chapter 71Figure 71.1 A V‐top appears at the bottom of a downtrend.Figure 71.2 This V‐top does not see price return to the launch price.Figure 71.3 This is what a typical failure of a V‐top looks like.Figure 71.4 Jim traded this busted V‐top and sold after a complex head‐and‐s...
73 Chapter 72Figure 72.1 Price forms an extended V‐top followed by a strong move lower at...Figure 72.2 Price in this extended V‐top sees the stock return to the launch...Figure 72.3 Price breaks out upward from this extended V‐top. Upward breakou...Figure 72.4 Stan uses lower highs to exit this extended V‐top trade.
74 Chapter 73Figure 73.1 A falling wedge bounded by two down‐sloping trendlines.Figure 73.2 A falling wedge with six trendline touches. Several alternating ...Figure 73.3 An example of a falling wedge 5% failure. Price does not move mo...Figure 73.4 The highest price in the wedge becomes the target price to which...Figure 73.5 This falling wedge trade made 51%.Figure 73.6 More than one‐fourth of falling wedges drop below the bottom tre...
75 Chapter 74Figure 74.1 A rising wedge with two up‐sloping trendlines. The volume trend ...Figure 74.2 Shown are two rising wedges with at least five touches of the tw...Figure 74.3 An example of a rising wedge 5% failure. Price fails to move dow...Figure 74.4 A downward breakout from the symmetrical triangle suggests price...Figure 74.5 This rising wedge predicts price will fall to 33.75, and it does...
76 Chapter 75Figure 75.1 This Wolfe wave sees price drop but did not reach its target whe...Figure 75.2 Price met the target in this example on time.Figure 75.3 Price failed to perform as expected in this Wolfe wave.Figure 75.4 Miles makes money from this swing trade.
77 Chapter 76Figure 76.1 This bullish Wolfe wave meets its price target quickly.Figure 76.2 This Wolfe wave sees price climb and meet its target almost exac...Figure 76.3 Price fails to rise far enough to reach its target.Figure 76.4 When the Wolfe wave works, it can be easy to make money quickly,...
78 GlossaryFigure G1 This triple top busts more than three times but is called a triple...Figure G2 Clockwise from upper left: A partial decline and partial rise give...Figure G3 How stop‐loss orders are triggered as price rises to the ultimate ...Figure G4 Undershoot (B) and overshoot (F) appear near the start of two char...
