Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 74

Are you a swinger? Swing trader, that is. If so, then the following table is just for you. With this pattern, you can use your software to calculate at what price D would need to appear to complete the bat. Then you can wait to see if it appears.

If it does, then consider buying the stock and riding price higher. But how often does the stock turn upward at D, and how far up does price rise? Those are important questions any swing trader wants to know. Here's what I found out.

Table 5.3 Price Move after Pattern End

Description	Bull Market
How often does price turn at D?	91%
How many rise to point A?	58%
How many rise to point B?	86%
How many rise to point C?	64%

Table 5.3 shows how price behaves after point D.

How often does price turn at D? I found price turning upward at D 91% of the time, which is wonderful. It's exciting. Swing traders will be delighted when I share the news, I'm sure.

How many rise to…? Gauging performance using another method, I checked how often price climbed to the various turns in the pattern.

For example, the closest turn to D is B. I found that price climbed to B 86% of the time. At the top of the pattern is point A. How many climbed to A? Answer: 58%.

Even though just over half of bats saw price reach A, with an average rise of 44%, it's clear many bats see price rise substantially to overcome the stinkers trying to pull the results down.

Hopefully, you can use these numbers as guidance to help you trade this pattern better by estimating how far price might rise.