Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 70

Figure 5.1 shows what a bullish bat pattern looks like, one that performs better than expected. The pattern has five turning points, cleverly labeled X, A, B, C, and D. Why is X labeled as the first turning point? I haven't a clue, I'm too lazy to find out, and that's the convention. So that's what I use.

In Figure 5.1, the bat appeared when price formed a second bottom at X, mirroring the valley in October. Price recovered to the top of a trading range setup by prior peaks (and valleys) and hit turn A, the top of the pattern. Price found overhead resistance there that it couldn't overcome. So price retraced in an ABC‐type consolidation (that is, a drop to B, upward retrace to C, and drop to D). The stock broke out upward at F when price closed above the top of the pattern, pushed through a ceiling of resistance, and soared.

Figure 5.1 This bullish bat breaks out upward (at F) and makes a strong push higher.

Volume trended upward, which I show at E. This is one of the few bats to show an upward volume trend. Based on the average, bats with an upward volume trend tend to underperform. I will discuss statistics later in this chapter.