Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 79

Figure 6.1 shows a good example of a big M chart pattern. Price begins climbing to the first peak in the pattern from the launch price at A. Think of point A as the launch pad with the hope that price will return to the pad after the pattern completes.

In perfectly shaped big Ms, the price trend to the first peak is a straight line affair, often quite fast and steep, like you see here on the way to peak B.

The big M is a twin peak pattern, BC. It's similar in shape to a double top except for the tall sides, as I mentioned. Between the peaks is a recession, D, a valley where price bottoms. The stock recovers and forms a second peak, C.

After the second peak, price drops and breaks out when price closes below the valley between the two peaks. That happens at E in this example. The stock continues lower but then gets sucked back up to G. It's a pullback, which often returns the stock back to, or near to, the breakout price in 12 days on average.

A pullback is not part of the big M. Rather it's just something that occurs about two‐thirds of the time. Traders need to be aware of it so that they don't close out a position prematurely.

Figure 6.1 This big M sees price rise up to peak B and drop from peak C, bottoming at F just below the launch price, A.

In well‐behaved big Ms, price drops after the second peak in a straight‐line run down to the launch price, mirroring the rise to the first peak. That behavior represents the ideal situation, so don't depend on that happening in real life. In this example, the stock drops farther than the launch price, bottoming at F. Many times, however, price will bottom just above the launch price.