Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 78
Downward Breakouts
Оглавление| Bull Market | Bear Market | |
| Reversal or continuation | Short‐term bearish reversal | Short‐term bearish reversal |
| Performance rank | 8 out of 36 | 10 out of 19 |
| Breakeven failure rate | 14% | 8% |
| Average decline | 17% | 22% |
| Volume trend | Downward | Downward |
| Pullbacks | 67% | 63% |
| Percentage meeting price target | 55% | 58% |
| See also | Bullish bat, double tops |
The big M chart pattern is a variation of a double top, a twin peak pattern with a tall left side. In well‐behaved patterns, the right side will also be tall so that the pattern resembles a tall M. The pattern confirms when price closes below the valley between the two peaks. We'll see a picture of the pattern in a moment.
Big Ms only break out downward, but they appear in both bull and bear markets. The average decline is about what you would expect from a bearish chart pattern, higher in bear markets than in bull markets. Volume trends downward from the first peak to the second, but plays no role in performance. Volume devotees may find that odd.
The performance rank for big Ms is good in bull markets but slips in bearish ones as the above statistics show. Let's look at some examples to see if we should include them in our trading toolbox.
