Statistics Summary ‘This summary is an alphabetical list, sorted by market direction, showing per- formance statistics for the chart and event patterns covered in this book. The patterns are also ranked and sorted by market direction, In the following tables, 2 minus sign means a decline and N/A means not applicable. Where rank is listed, it is the sum of the columns to the left of it, sd. Ties share the same value with no breaks in the sorted and then renumbe: numbering. Chart patterns: Bull markets Change ‘Average Breakeven —After_—_Throwback Rise or Failure Trend or Pullback Decline Rate Ends Occurrence Formation %) @) ), 8) Broadening Bottoms, down breakout as 16 52 2 Broadening Bottoms, Up breakout 27 10 34 a Broadening Formations, Right-Angled and Ascending, down breakout as 20 33 6s Broadening Formations, Right-Angled and Ascending, Up breakout 29 u 31 47 Broadening Formations, Right-Angled and Descending, down breakout as “4 ss 51 Broadening Formations, Right-Angled and Descending, Up breakout 28 19 26 32 Broadening Tops, down breakout as 18 3 48 (continued) 965966 Statistics Summary Formation Broadening Tops, up breakout Broadening Wedges, Ascending, down breakout Broadening Wedges, Ascending, up breakout Broadening Wedges, Descending, down breakout Broadening Wedges, Descending, up breakout Bump-and-Run Reversal Bottoms, up breakout Bump-and-Run Reversal Tops, down breakout Cup with Handle, up breakout Cup with Handle, Inverted, down breakout Diamond Bottoms, down breakout Diamond Bottoms, up breakout Diamond Tops, down breakout Diamond Tops, up breakout Double Bottoms, Adam & ‘Adam, up breakout Double Bottoms, Adam & Eve, up breakout Double Bottoms, Eve & Adam, Up breakout Double Bottoms, Eve & Eve, Up breakout Double Tops, Adam & Adam, down breakout Double Tops, Adam & Eve, down breakout Double Tops, Eve & Adam, down breakout Double Tops, Eve & Eve, down breakout Flags, down breakout Flags, up breakout Average Rise or Decline (8) 28 33 38 a9 34 2 36 2 27 35 37 35 40 18 16° 23° Break-even Failure Rate 9) 15 u" u 10 “4 3B Change ‘After Trend Ends 4) 33 49 31 47 50. 54 63 4 Throwback or Pullback Occurrence (8) 34 57 50 53 53 59 62 58 54 n 53 37 59 64 59 37 55 o 59 6 59 46 4BFormation Flags, High and Tight, up breakout Gaps Head-and-Shoulders Bottoms, Up breakout Head-and-Shoulders Bottoms, Complex, up breakout Head-and-Shoulders Tops, down breakout Head-and-Shoulders Tops, Complex, down breakout Hom Bottoms, up breakout Hom Tops, down breakout Island Reversals, down breakout Island Reversals, up breakout Islands, Long, down breakout Islands, Long, up breakout Measured Move Down Measured Move up Pennants, down breakout Pennants, up breakout Pipe Bottoms, up breakout Pipe Tops, down breakout Rectangles Bottoms, down breakout Rectangles Bottoms, up breakout Rectangles Tops, down breakout Rectangles Tops, up breakout Rounding Bottoms, up breakout Rounding Tops, down breakout Rounding Tops, up breakout Scallops, Ascending, down breakout Scallops, Ascending, up breakout Statistics Summary 967 Change ‘Average —Breakeven —After_—-Throwback Rise or Failure Trend or Pullback Decline Rate Ends Occurrence (8) 6) 0), %) 69 ° 36 54 NIA NIA NIA NIA 38 3 31 45 39 4 29 6 2 4 31 50 23 4 48 7 35 9 32 29 2 7 31 33 a7 v 4s 65 2B 18 28 70 22 s 46 54 31 u 35 67 NIA NIA 46 NIA NIA NIA -26 NIA 19° 4 40 3 25° 2 25 47 45 5 33 44 20 u 56 a a4 16 62 69 46 10 28 33 a7 1 87 58 39 9 30 64 B s 31 40 a9 R 37 48 37 2 3! 53 a4 27 54 56 31 10 32 58 (continued)968 Statistics Summary Formation Scallops, Ascending and Inverted, up breakout Scallops, Descending, down breakout Seallops, Descending, up breakout Scallops, Inverted and Descending, down breakout ‘Thee Falling Peaks, down breakout ‘Three Rising Valleys, up breakout Triangles, Ascending, down breakout ‘Triangles, Ascending, up breakout Triangles, Descending, down breakout ‘Triangles, Descending, up breakout ‘Triangles, Symmetrical, down breakout ‘Triangles, Symmetrical, up breakout ‘Triple Bottoms, up breakout Triple Tops, down breakout Wedges, Falling, down breakout Wedges, Falling, up breakout ‘Wedges, Rising, down breakout ‘Wedges, Rising, up breakout Average Rise or Decline (8) “a a7 2 31 37 a9 as 32 a4 28 Break-even Failure Rate 9) 1s 2 10 R 16 B 4 10 1s u 24 8 Change ‘After Trend Ends 4) 32 31 32 55 56 33 82 29 60. 30 50 31 33 83 28 3 30 Throwback or Pullback Occurrence (8) “1 55 2 se 59 60 49 87 54 37 so 37 64 6 68 56 8 73 ®Flags and pennants measure performance to the trend high or low, not the ultimate highStatistics Summary 969 Event Patterns: Bull Markets Formation Change ‘After Trend Ends ) Throwback ‘r Pullback Occurrence %) Dead-Cat Bounce Dead-Cat Bounce, Inverted Earnings Surprise, Bad, down breakout Earnings Surprise, Good, up breakout FDA Drug Approvals, down breakout FDA Drug Approvals, up breakout Flag, Earnings, up breakout Same-Store Sales, Bad, down breakout Same-Store Sales, Good, up breakout Stock Downgrades, down breakout Stock Downgrades, up breakout Stock Upgrades, down breakout Average Breakeven Rise or Failure Decline Rate %) ) NIA NIA NIA NIA a3 31 24 29 3 39 20 34 34 10 a2 26 2B 20 a4 26 27 2s a2 38 24 18 NIA NIA 31 7 52 29 33 54 28 50. 30 NA NIA a a 66 6 8 53 59 48 49 37 Stock Upgrades, up breakout 68 Rank: Bull Market Chart Patterns Formation Change ‘After Trend Ends Rank = overall Rank Head-and-Shoulders Tops, down breakout Diamond Bottoms, down breakout Measured Move Down Double Tops, Eve & Eve, down breakout Head-and-Shoulders Tops, Complex, down breakout ‘Average Break-even Rise or Failure Decline Rate Rank Rank 2 2 3 8 NIA NIA 6 9 1 2 3 (continued)970 Statistics Summary Formation Bump-and-Run Reversal Tops, down breakout Horn Tops, down breakout Double Tops, Adam & Adam, down breakout Pipe Tops, down breakout Rounding Tops, down breakout Islands, Long, down breakout Scallops, Inverted and Descending, down breakout Rectangles Tops, down breakout Diamond Tops, down breakout ‘Triple Tops, down breakout Cup with Handle, Inverted, down breakout Three Falling Peaks, down breakout Triangles, Ascending, down breakout Triangles, Descending, down breakout Pennants, down breakout Broadening Wedges, Descending, down breakout Flags, down breakout Rectangles Bottoms, down breakout Double Tops, Eve & Adam, down breakout Broadening Formations, Right- Angled and Descending, down breakout Broadening Wedges, ‘Ascending, down breakout ‘Teiangles, Symmetrical, down breakout Double Tops, Adam & Eve, down breakout Scallops, Descending, down breakout Average Rise or Decline Rank NA NA 10 Break-even Failure Rate Rank 1s u 2 u 2 1B Change After Trend Ends Rank 15 18 Overall RankFormation ‘Wedges, Falling, down breakout Broadening Bottoms, down breakout Broadening Tops, down breakout Broadening Formations, Right-Angled and Ascending, down breakout ‘Wedges, Rising, down breakout Scallops, Ascending, down breakout Island Reversals, down breakout Gaps Flags, High and Tight, up breakout Measured Move Up Pipe Bottom, up breakout Scallops, Ascending and Inverted, up breakout ‘Three Rising Valleys, up breakout Rounding Bottoms, up breakout Triangles, Descending, up breakout Broadening Wedges, Ascending, up breakout Double Bottoms, Eve & Eve, up breakout Triple Bottoms, up breakout Head-and-Shoulders Bottoms, Up breakout Diamond Bottoms, up breakout Double Bottoms, Adam & Eve, Up breakout Bump-and-Run Reversal Bottoms, up breakout Average Rise or Decline Rank 10 10 NA NIA u 10 Statistics Summary 971 Change Breakeven After Failure Trend Rate + Ends Rank Rank B 4" 4 10 16 ° 7 ° 18 ° 19 8 1s 7 NIA NIA 1 1 NIA 10 5 4 4 s 5 4 5 6 7 7 2 6 4 6 4 4 3 6 4 4 5 4 2 8 Overall Rank v v7 20 20 2 (continued)972 Statistics Summary Formation Head-and-Shoulders Bottoms, Complex, up breakout Double Bottoms, Adam & ‘Adam, up breakout Double Bottoms, Eve & Adam, Up breakout Rectangles Bottoms, up breakout Broadening Wedges, Descending, up breakout Rectangles Tops, up breakout Rounding Tops, up breakout Cup with Handdle, up breakout Hom Bottoms, up breakout Islands, Long, up breakout Scallops, Ascending, up breakout Triangles, Symmetrical, up breakout Broadening Bottoms, up breakout Triangles, Ascending, up breakout ‘Wedges, Rising, up breakout Pennants, up breakout Broadening Tops, up breakout Broadening Formations, Right-Angled and Ascending, Up breakout ‘Wedges, Falling, up breakout Diamond Tops, up breakout Flags, up breakout Scallops, Descending, up breakout Broadening Formations, Right-Angled and Descending, Up breakout Island Reversals, up breakout Average Rise or Decline Rank 2 2 4 10 B 2 16 16 16 19 2 18 NA v7 v7 1s 19 NIA 21 18 20 Break-even Failure Rate Rank 10 10 3 u u 10 6 1s “4 Change After Trend Ends Rank Overall Rank 2 2 3 3 “4 15 16 16 v7 v7 18 9 20 21 2 2B 2BRank: Bull Market Event Patterns Change Average Break-even After Rise or Failure Trend Decline Rate Ends Formation Rank Rank Rank Dead-Cat Bounce NIA Nia Nia Dead-Cat Bounce, Inverted NIA NIA NIA Same-Store Sales, Bad, down breakout 3 1 1 Stock Downgrades, down breakout 1 1 4 Earnings Surprise, Bad, down breakout 2 2 3 FDA Drug Approvals, down breakout 2 4 2 Stock Upgrade, down breakout 3 3 5 Flag, Earnings, up breakout 1 1 1 Stock Upgrades, up breakout 3 2 2 Stock Downgrades, up breakout 2 4 2 Same-Store Sales, Good, up breakout 4 3 4 Earnings Surprise, Good, up breakout 3 5 5 FDA Drug Approvals, up breakout 5 6 3 Chart Patterns: Bear Markets Change Average Break-even After Rise or Failure Trend Decline Rate Ends Formation %) C8) 8) Broadening Bottoms, down breakout “18 ° 46 Broadening Bottoms, up breakout 2 ° 35 Broadening Formations, Right- Angled and Ascending, down breakout 2 8 47 Broadening Formations, Right-Angled and Ascending, up breakout 15 u 38 Statistics Summary 973 = overall Rank Throwback ‘or Pullback Occurrence (8) 56 44 52 4“ (continued)974 Statistics Summary Change ‘Average —Breakeven —After_—-Throwback Rise or Failure Trend or Pullback Decline Rate Ends Occurrence Formation %) 6) 0), %) Broadening Formations, Right- Angled and Descending, down breakout 23 4 55 7 Broadening Formations, Right- Angled and Descending, up breakout 23 6 35 50. Broadening Tops, down breakout 20 3 49 2 Broadening Tops, up breakout 24 " 33 53 Broadening Wedges, Ascending, down breakout 21 4 37 82 Broadening Wedges, Ascending, up breakout 18 ° 30 70 Broadening Wedges, Descending, down breakout 25 2 4 66 Broadening Wedges, Descending, up breakout 24 u 32 6 Bump-and-Run Reversal Bottoms, up breakout 31 1 34 7 Bump-and-Run Reversal Tops, down breakout 227 1 48 65 Cup with Handle, up breakout B 7 34 a2 Cup with Handle, Inverted, down breakout 26 2 54 48 Diamond Bottoms, down breakout 449 ° 48 40 Diamond Bottoms, up breakout 36 3 36 60 Diamond Tops, down breakout 24 4 47 37 Diamond Tops, up breakout 33 ° 34 54 Double Bottoms, Adam & ‘Adam, up breakout 24 7 32 61 Double Bottoms, Adam & Eve, Up breakout 33 4 35 54 Double Bottoms, Eve & Adam, Up breakout 23 8 36 56 Double Bottoms, Eve & Eve, Up breakout 24 7 34 46 Double Tops, Adam & Adam, down breakout 19 " ar 48 Double Tops, Adam & Eve, down breakout 2 7 a 58Formation Double Tops, Eve & Adam, down breakout Double Tops, Eve & Eve, down breakout Flags, down breakout Flags, up breakout Flags, High and Tight, up breakout Gaps Head-and- Shoulders Bottoms, Up breakout Head-and- Shoulders Bottoms, Complex, up breakout Head-and-Shoulders Tops, down breakout Head-and- Shoulders Tops, Complex, down breakout Horn Bottoms, up breakout Horn Tops, down breakout Island Reversals, down breakout Island Reversals, up breakout Islands, Long, down breakout Islands, Long, up breakout Measured Move Down Measured Move up Pennants, down breakout Pennants, up breakout Pipe Bottoms, up breakout Pipe Tops, down breakout Rectangles Bottoms, down breakout Rectangles Bottoms, up breakout Rectangles Tops, down breakout Rectangles Tops, up breakout Rounding Bottoms, up breakout Rounding Tops, down breakout Average Rise or Decline (8) Statistics Summary 975 Change Break-even After Failure Trend Rate Ends 6) 0), 5 51 2 45 ° 40 3 25 ° 35 NIA NIA 4 33 3 33 1 45 1 a 7 =37 2 a7 5 46 10 37 2 43 4 37 NIA 49 NIA 27 o 50 2 24 4 36 2 50 4 48 u 35 9 4s 16 33 5 33 9 53 Throwback or Pullback Occurrence (8) 54 31 44 33 6s NIA 31 66 64 60 58 44 59 75 54 74 NIA NIA 54 54 52 37 3 60 65 n 43 7 (continued)976 Statistics Summary Formation Rounding Tops, up breakout Scallops, Ascending, down breakout Scallops, Ascending, up breakout Scallops, Ascending and Inverted, up breakout Scallops, Descending, down breakout Scallops, Descending, up breakout Scallops, Inverted and Descending, down breakout Three Falling Peaks, down breakout “Three Rising Valleys, up breakout ‘Triangles, Ascending, down breakout Triangles, Ascending, up breakout Triangles, Descending, down breakout ‘Triangles, Descending, up breakout Triangles, Symmetrical, down breakout ‘Triangles, Symmetrical, up breakout Triple Bottoms, up breakout ‘Triple Tops, down breakout ‘Wedges, Falling, down breakout ‘Wedges, Falling, up breakout Wedges, Rising, down breakout ‘Wedges, Rising, up breakout Average Rise or Decline (8) 19 7 Break-even Failure Rate 9) 16 4 6 " 15 4 “This decline is so large because only 20 samples are used. “Flags and pennants measure performance to the trend high or low, not the ultimate high Change ‘After Trend Ends 4) 35 46 52 33 36 35 Throwback or Pullback Occurrence (8) 32 37 a2 65 52 58 50. 62 65 45 54 59 52 62 55 6 64 2 61 cy 66Formation Dead-Cat Bounce Dead-Cat Bounce, Inverted Earnings Surprise, Bad, down breakout Earnings Surprise, Good, up breakout FDA Drug Approvals, down breakout FDA Drug Approvals, up breakout Flag, Earnings, up breakout Same-Store Sales, Bad, down breakout Same-Store Sales, Good, up breakout Stock Downgrades, down breakout Stock Downgrades, up breakout Stock Upgrades, down breakout Stock Upgrades, up breakout Rank: Bear Market Chart Patterns Formation Measured Mave Down Cup with Handle, Inverted, down breakout Diamend Bottoms, down breakout Pennants, down breakout Pipe Tops, down breakout Bump-and-Run Reversal Tops, down breakout Statistics Summary Event Patterns: Bear Markets Average Breakeven Rise or Failure Decline Rate %) ) NIA NIA NIA NIA a7 26 “ 28 NIA NIA NIA NIA 2 16 a4 27 4 27 9 v7 4 28 18 2B 16 21 ‘Average Break-even Rise or Failure Decline Rate Rank Rank NIA NIA 4 3 . 1 NIA 1 3 3 3 2 Change ‘After Trend Ends ) NIA NIA 37 NIA NIA 32 39 35 Change ‘After Trend Ends Rank 977 Throwback ‘r Pullback Occurrence %) NIA NIA 45 “4 NIA NIA 58 60 70 45 50 7 59 Overall Rank a 4 (continued)978 Statistics Summary Formation Broadening Formations, Right- Angled and Descending, down breakout Scallops, Inverted and Descending, down breakout Head-and-Shoulders Tops, down breakout Islands, Long, down breakout Broadening Wedges, Descending, down breakout ‘Three Falling Peaks, down breakout Double Tops, Eve & Adam, down breakout Wedges, Falling, down breakout Head-and- Shoulders Tops, Complex, down breakout Rectangles Bottoms, down breakout Double Tops, Eve & Eve, down breakout ‘Triangles, Ascending, down breakout Flags, down breakout Horn Tops, down breakout Diamond Tops, down breakout Rounding Tops, down breakout Broadening Tops, down breakout Seallops, Descending, down breakout ‘Triple Tops, down breakout ‘Triangles, Descending, down breakout Island Reversals, down breakout Broadening Formations, Right- Angled and Ascending, down breakout Average Rise or Decline Rank Change Breakeven After Failure Trend Rate Ends Rank Rank 5 6 2 1 3 8 3 7 5 4 6 5 7 4 2 3B 5 8 3 1 4 ° 1 4 3 9 5 9 10 3 4 7 ° 5 10 u 6 6 10 ° 9 Overall Rank 10 10 10 4" u 2Statistics Summary 979 Change Average Break-even After Rise or, Failure Trend _ Decline Rate Ends = Overall Formation Rank Rank Rank Rank Double Tops, Adam & Eve, down breakout 8 8 2 1s Rectangles Tops, down breakout ° 10 vn 16 Double Tops, Adam & Adam, down breakout u u ° 7 ‘Triangles, Symmetrical, down breakout 10 18 Broadening Bottoms, down breakout 2 10 10 18 Scallops, Ascending, down breakout 1 2 10 9 Broadening Wedges, Ascending, down breakout ° 2 1s 20 Wedges, Rising, down breakout 10 3 16 2 Flags, High and Tight, up breakout 1 1 4 1 Diamond Bottoms, up breakout 2 4 3 2 Diamond Tops, up breakout 3 1 5 2 Measured Move Up. NIA NIA 9 = Pipe Bottom, up breakout 4 5 3 3 Double Bottoms, Adam & Eve, Up breakout 3 5 4 3 Bump-and-Run Reversal Bottoms, up breakout 5 2 5 3 Head-and-Shoulders Bottoms, Complex, up breakout 5 4 6 4 Islands, Long, up breakout ° 5 2 5 Hom Bottoms, up breakout 7 8 2 6 Head-and-Shoulders Bottoms, Up breakout 6 5 6 6 Rounding Bottoms, up breakout 5 6 6 6 Broadening Formations, Right- Angled and Descending, up breakout u 7 4 7 ‘Triangles, Descending, up breakout 7 10 5 7 (continued)980 Statistics Summary Formation Scallops, Ascending and Inverted, up breakout ‘Triangles, Symmetrical, up breakout Double Bottoms, Eve & Adam, Up breakout ‘Triple Bottoms, up breakout Double Bottoms, Eve & Eve, Up breakout Cup with Handle, up breakout Double Bottoms, Adam & ‘Adam, up breakout Broadening Wedges, Ascending, up breakout Island Reversals, up breakout Rectangles Bottoms, up breakout ‘Wedges, Falling, up breakout Triangles, Ascending, up breakout Broadening Bottoms, up breakout Pennants, up breakout Three Rising Valleys, up breakout Broadening Tops, up breakout Broadening Wedges, Descending, up breakout Broadening Formations, Right-Angled and Ascending, Up breakout Flags, up breakout Scallops, Descending, up breakout Rounding Tops, up breakout ‘Wedges, Rising, up breakout Scallops, Ascending, up breakout Rectangles Tops, up breakout Gaps “This rank is high because only 20 samples are used. Average Rise or Decline Rank 10 10 16 3 B NIA 2 10 10 18 NIA 4 1s W 1s 4 NIA Break-even Failure Rate Rank 2 12 B 10 2 2 v7 1s “4 16 16 NIA Change After Trend Ends Rank NIA Overall Rank 10 n u n n 2 B B 16 16 7 18 19Statistics Summary Rank: Bear Market Event Patterns Formation Stack Downgrades, down breakout Stack Upgrades, down breakout Earnings Surprise, Bad, down breakout Same-Store Sales, Bad, down breakout FDA Drug Approvals, down breakout Flag, Earnings, up breakout Stack Upgrades, up breakout Stock Downgrades, up breakout Same-Store Sales, Good, up breakout Earnings Surprise, Good, up breakout Dead: Dead-Cat Bounce, Inverted Cat Bounce FDA Drug Approvals, up breakout Average Rise of Decline Rank NA N/A NIA Change Breakeven After Failure Trend Rate Ends Rank Rank 1 3 2 3 3 2 4 1 NIA NIA 1 2 4 1 3 3 4 3 NIA NIA NIA NIA NIA NIA 981 Overall RankGlossary and Methodology Warning: The statistics in this book are based on perfict trades. For example, the average rise for head and shoulders bottoms in a bull market is an average of 554 perfect trades—buying exactly at the breakout price and selling at the ultimate high, the highest high before prices tumble by at least 20%. The likelihood of duplicating that in actual trading is zero, Thus, do not expect your trades to perform as well as the “average” statistics in this book. Rather, use the statis. tics as tools to help gauge how well the pattern you are about to trade will do when compared to other patterns in this book. Here are the statistics tables used in each chapter with a brief explanation of each category in them. A glossary of selected terminology follows. General Statistics Description Explanation Number of formations T used 500 stocks from mid-1997 to mich1996 plus approximately 500 additional stocks from 1999 to mid-2004 (and others between those two ranges), but not al stocks covered the entire 1999 to 2004 period. Reversal (R), continuation (c) ‘A count of the number of trend reversals and continuations (consolidations), RIC performance Shows the average rise/decline of reversals and continuations. Average rise or decline The average rise/decline from the breakout to the ultimate high/low. Rises or declines over 45% A .count of the number of times prices rise/decline more than 459%, Change after trend ends After price reaches the ultimate high/low, this measures the drop/rise to a new ulkimate lowshigh. Busted pattern performance After price reaches the ultimate high/low by rising less than or equal to 596, this measures the move toa new ultimate low/high Standard & Poor's 500 change Reports the average change in the index from the date of the chart pattern breakout to the date of the ultimate high/low. Days to ultimate high or low The average time it takes prices to reach the ultimate high/low from the breakout. 982Glossary and Methodology 983 Failure Rates Maximum Price Rise or Decline % Explanation 5 (oreakeven) ‘count of how often prices stop rsing/dedining between (0% and less than or equal to 596 after the breakout. 10 (015, 20,...) ‘A count of how often prices stop rising/declining between 5% and less than or equal to 10%, between 10% and less than or equal to 15%, and so on, after the breakout. Breakout and Postbreakout Statistics Description Formation end to breakout Percentage of breakouts ‘occurring near the 12-month low (U, center (6), or high (H) Percentage rise/decline for each 12-month lookback period Throwbacks/pullbacks Average time to throwback/ pullback ends Average rise/decline for patterns with throwback/pulloack Average rise/decline for patterns without throwback/pullback Performance with breakout gap Performance without breakout gap Average gap size Explanation The average time from the end of the pattern to the breakout A frequency distribution using the breakout price in relation to the price range over the prior year, split into thirds For the three price ranges just described, this calculates the average performance from the breakout to the ultimate high/low for those patterns with breakouts in the associated yearly price range, ‘A percentage of the number of throwbacks/pull- backs versus the number of patterns qualifying, Measured from the breakout date to the date prices return to or near the breakout price The average rse/decline for those patterns with throwbacks/pulbacks, The average rise/decline for those patterns without throwbacks/pullbacks The average rise/decline for those patterns with price gaps on the day of breakout. The average rise/dectine for those patterns without gaps on the day of breakout. The average gap size for those patterns with breakout day gaps. Frequency Distribution of Days to Ultimate High or Low Days: 7 @to7 days, 8 to 14, ete.) Upward/downward Measured from the breakout to the ultimate high/low, each breakouts entry isa count of how many patterns had prices reaching the ultimate high/low within each 7-day period, expressed as a percentage ofall patterns in that breakout direction and market.984 Glossary and Methodology Description Tall pattern performance Short pattern performance Median height as a percentage ‘of breakout price Narrow pattern performance Wide pattern performance Median length Average formation length Short and narrow performance Short and wide performance Tall and wide performance Tall and narrow performance Description Rising volume trend performance Falling volume trend performance Size Statistics Explanation The average rise/decline for patterns taller than the median, The average rise/dectine for patterns equal to or shorter than the median The median of the height divided by the breakout price. The average rise/dectine for patterns equal to or narrower than the median length. The average rise/decline for patterns above the median length. The median length from pattern start to end The average length from pattern start to end. The average rise/dectine for patterns both shorter and narrower than the respective medians. The average rise/dectine for patterns both shorter and wider than the respective medians, The average rise/dectine for patterns both taller and wider than the respective medians. The average rise/dectine for patterns both taller and narrower than the respective medians. Volume Statistics Explanation Uses the slope of the line found using linear regression on volume from the pattern’ start to end, The average performance for all patterns with an up-sloping volume trend, Same as the preceding, but for declining volume trends. U-shaped volume pattern performance _The average performance for patterns with Dome-shaped volume pattern performance U-shaped volume, The average performance for patterns with dome-shaped volume, Neither U-shaped nor dome-shaped The average performance for patterns with volume pattern performance flat, rising, falling, or random volume shapes. Heavy breakout volume performance The average performance for patterns with breakout day volume higher than the 30-day average (not including the breakout day). Light breakout volume performance The average performance for patterns with breakout day volume lower than the 30-day average (not including the breakout day).Glossary and Methodology 985 Terminology Average ‘The sum of scores divided by the number of scores. Average rise or decline (ARD) The rise from the breakout price to the ultimate high, or the decline from the breakout price to the ultimate low, for each stock, and then computing the average. Bear market The decline in the Standard & Poor's 500 index from March 24, 2000 to October 10, 2002 Break-even failure rate A percentage of the patterns that fail to rise or decline more than 5% after the breakout. To break even assumes that the 5% move will cover the cost of trading. Breakout When price closes outside of a trend-line boundary or above/ below the pattern’s high/low, a breakout is said to occur. Performance ‘measures involving the breakout price use the intraday low (upward break: outs) or high (downward breakouts) from the breakout day in the compu- tation. The following list defines the breakout location for each pattern: Chart Pattern Breakout Location Broadening patterns, all types A close outside the trend-line boundary Bump-and-Run Reversal Bottoms A close above the trend-line boundary Bump-and-Run Reversal Tops _A close below the trend-line boundary Cup with Handle A close above the right rim or handle trend line Cup with Handle, Inverted A close below the right rim Diamond Bottoms, ‘Tops A close outside the trend-line boundary Double Bottoms, all types A close above the highest high between the two valleys Double Tops, all types A close below the lowest low between the two peaks Flags ‘A close outside the trend-line boundary Flags, High and Tight A close outside the trend-line boundary or highest high in the pattern Head-and-Shoulders Bottoms, A close above the down-sloping neckline, or Complex Bottoms a close above the high between the head and right shoulder for up-sloping necklines Head-and-Shoulders Tops, A close below the up-sloping neckline, or a Complex Tops close below the low between the head and right shoulder for down-sloping necklines Horn Bottoms A close above the highest high in the pattern Horn Tops A close below the lowest ow in the pattern Island Reversals ‘After the second gap Islands, Long After the second gap986 Glossary and Methodology Chart Pattern Breakout Location Measured Move Down, Up Not applicable Pennants A close outside the trend-line boundary Pipe Bottoms A close above the highest high in the pattern Pipe Tops A close below the lowest low in the pattern Rectangles Bottoms, Tops A close outside the trend-line boundary Rounding Bottoms A close above the right lip Rounding Tops A close below the right lip or above the highest high in the pattern Scallops, Ascending A close below the lowest low or highest high in the pattern Scallops, Ascending and Inverted A close above the highest high in the pattern Scallops, Descending For downward breakouts, a close below the Jowest low in the pattern; for upward breakouts, a close above the right scallop lip Scallops, Descending and Inverted A close below the lowest low in the pattern ‘Three Falling Peaks A close below the lowest low in the pattern ‘Three Rising Valleys ‘A close above the highest high in the pattern ‘Triangles, all types A close outside the trend-line boundary ‘Triple Bottoms A close above the highest high in the pattern ‘Triple ‘Tops A close below the lowest low in the pattern Wedges, Falling or Rising A close outside the trend-line boundary Breakout gap, breakout day gap A gap that occurs on the breakout day. Usually itis a breakaway gap, one that shows high volume after leaving a consolidation area, Breakout volume The volume level on the breakout day. The breakout day's volume is compared to the average volume over the prior 30 days (not including the breakout day). Bull market Every date outside of the bear market from March 24, 2000, to October 10, 2002, as posted by the Standard & Poor's 500 index. Busted pattern performance | Chart patterns that reach the ultimate high or low less than 5% away from the breakout. The performance measures how far prices move in the new direction (the direction opposite the breakout). Change after trend ends A gauge of what happens after price reaches the ultimate high or low. The price rise or decline measures from the ulti- mate high to a new ultimate low, or from an ultimate low to a new ulti- mate high.Glossary and Methodology 987 Confirmation point, price, or level A price or location that validates a chart pattern, Also known as the breakout point, price, or level. Consolidation Synonym for “continuation” when talking about trends (as in trend reversal or continuation). A consolidation region is a solid block of prices or a region in which prices switch from trending to moving side- ways. Continuation Synonym for consolidation. For a continuation, prices must break out in the same direction as they entered the pattern. For example, if price enters the pattern from the bottom and exits out the top, the pat- ter acts as a continuation, Sometimes an adjustment is made to the trend start (affecting the direction of entry) for prices that overshoot or under- shoot the start of the pattern. Corrective phase Part of a measured move up or down, a region where prices retrace a portion of the prior move. Countertrend pattern A pattern with an upward breakout in a bear market or a downward breakout in a bull market; that is, the breakout direction is against the prevailing market trend, Days to ultimate high or low ‘The average time from the breakout date to the date of the ultimate high or low. Dual bumps In a bump-and-run reversal, prices bump up (or down) and then return to the trend line two or more times. End (as in “pattern end”) Usually the highest high or lowest low in a chart start and end of a double bottom is the lowest pattern. For example low in each valley. Failure rate A measure of how many patterns fail to rise or decline a selected amount (like 5%, 10% and so on). The failure rate includes all chart pat- terns of the selected type breaking out in the selected direction. Patterns breaking outin an unexpected direction are no longer considered failures. Flat base A consolidation region in which prices touch or come near the same price level multiple times over several weeks or months, for which identification is usually easiest on the weekly scale. The bottom or top of this region may appear flat and sometimes forms the base of an impend- ing up move, hence the name, “flat base.” Formation end to breakout ‘The delay from the end of the pattern to the breakout, Frequency distribution A method to assign data to one of several nonover- lapping intervals. A frequency distribution shows how often values occur Gap For upward price trends, a gap is when today’s low price is above yes- terday’s high. For downward price trends, a gap occurs when today’s high price is below yesterday's low. Gap performance Computed using the closing price the day before the gap to the ultimate high or low for those patterns that use a trend-line break- out. For patterns that use the highest high or lowest low as the breakout price, the high or low substitutes for the prior close in the computation.988 Glossary and Methodology Handle performance ‘The rise (or decline) to the ultimate high (or low) from handles shorter or longer than the median handle length in a cup-with-han- dle pattern. The handle measures from the right cup lip to the breakout. Handle retrace For inverted cup with handles, this is the rise from the right cup low to the handle high as a percentage of the cup height from the right cup to the highest high in the pattern. Heavy left/right volume performance _A comparison of volume surround- ing peaks or valleys using, 2 days before to 2 days after the peak or valley. Internal partial decline An internal partial decline is the same as a partial decline (see that entry) only the breakout fails to occur and the chart pat- tern continues developing. Look for two consecutive trend-line touches that occur on the same side with a minor low between them (it looks like a loop hanging off the trend line). ‘The minor low should nor come close to or touch the opposite trend line. An internal partial decline only occurs after the chart pattern is valid, meaning at least two touches of each trend line. See Figure 1 Internal partial rise An internal partial rise occurs within a chart pattern after prices touch a lower trend line, rise, and then return to the lower trend line without coming close to or touching the opposite trend line. A break out does not follow. Look for two consecutive trend-line touches to occur on the same side with a minor high between them (looking like a hill om the trend line). An internal partial rise is the same as a partial rise (sce that entry) only a breakout does not follow and the chart pattern con- tinues developing. An internal partial rise only occurs after the chart pat- tern is valid, meaning at least two touches of each trend line, See Figure 1. Lead-in height ‘The height from the trend line to the highest high (or low- est low) in the first quarter of a bump-and-run reversal. Linear regression A method that fits a straight line to a series of numbers; the slope of the resulting line gives the trend. Used to find whether vol- ume is trending upward or downward over the course of the chart pat- tern, from start to end, not to the breakout. Maximum price rise or decline Used as the nonoverlapping intervals for a frequency distribution of failure rates, this is an arbitrary list of bench- mark values (such as 5%, 10%, 15%, and so on), Measure rule Varies from pattern to pattern butiis usually the pattern height added to (upward breakouts) or subtracted from (downward breakouts) the breakout price. ‘The result is the predicted price target. See “Percent meeting price target” in the Results Snapshot of each chapter for how often prices hit their predicted targets. Median The median value is the middle one in a sorted list of values such that half the values are below the median and half above. If no middle value exists, the average of the two closest values is used. For example, in the list 10, 15, 30, 41, and 52, the median is 30 because there are two val- ues on either side of i.Glossary and Methodology 989 Minor high Price peak usually separated from other peaks by at least a week ‘These are points 3 and 4 in Figure 1 ‘Minor low _A price valley usually separated from other valleys by at least a week. These are points I and 2 in Figure 1 Narrow pattern Measured from the formation start to end, this is a hori~ zontal measure in time. Patterns longer than the median length are wide; shorter than the median are narrow. Neckline A trend line joining the valleys (head-and-shoulders top) or peaks (head-and-shoulders bottom). A close below or above the neckline, respectively, means a breakout. Overshoot When price jumps up or overshoots a few days just before enter- ing the pattern. Partial decline After prices touch a top trend line, prices decline but do not touch (or come that close to) a lower trend line before forming a distinct minor low and usually staging an immediate upward breakout. Partial declines must begin before the actual breakout and form after a valid chart pattern appears (in other words, after the minimum number of trend-line touches, usually two). See Figure 1. Partial decline failure When a partial decline occurs but the breakout is in the wrong direction. Shaped Volume Dome-shaped Volume owback | [ternal Paral Rise Faling Volume ree ae Dae nama a Write space Incernal Pata Decne nite Space || Tiotame Figure 1 Clockwise from upper left: A partial decline and partial rise give advance notice of the breakout direction. Volume comes in a variety of shapes. An internal partial rise or decline wrongly predict the breakout direction. Pullbacks and throw- backs occur after the breakout when price returns to the breakout price or trend lime within 30 days and shows white space in the price retrace. Minor lows are points 1 and 2; minor highs are points 3 and 4990 Glossary and Methodology Partial rise After prices touch a lower trend line, prices rise but do not touch (or come that close to) the upper trend line before forming a distinct minor high and usually staging an immediate downward breakout. The partial rise must begin before the breakout and form near the end of a valid chart pattern (in other words, after the minimum number of trend- line touches, usually two). See Figure 1 Partial rise failure When a partial rise occurs but the breakout is in the wrong direction. See Figure 1 Percentage meeting price target How often prices meet or exceed the price target found using the measure rule Performance rank A sum of the individual ranking of the average rise/ decline, break-even failure rate, and change after trend ends, sorted, and ranked. A rank of 1 is the best performing. Ties are allowed with no break in the sequence (as in 1, 2, 2, 3, not 1, 2, 2, 4), Position trader A trader who holds 2 position for days, weeks, or longer fol- lowing a longer term trend. Contrast with swing trader. Premature breakout When prices close outside the formation trend-line boundary but quickly return. A premature breakout cannot be distin- guished from a valid breakout when it occurs. The second edition of this book assumes the premature breakout is the actual breakout when com- puting statistics. The first edition ignored premature breakouts. Pullback A temporary retrace after a downward breakout. Prices return to, or come very close to, the breakout price or trend line within 30 days after the breakout. White space must appear between the hooking price action of the pullback and the breakout price. This rule prevents the pullback term being applied to prices clustering near the breakout price. igure 1 Qualifying A pattern must meet the breakout direction (up or down) and market type (bull or bear) to be used in calculations. R/C performance ‘The performance of reversals or continuations, measured separately. Reversal The movement of price when it enters and exits the chart pattern from the same side, Overshoot and undershoot are ignored in determin- ing the entry direction, Standard & Poor’s $00 change ‘The change in the S&P 500 index from the date of the chart pattern breakout to the date of the ultimate high or low. Start (as in “pattern start”) Usually the highest high in a minor high or lowest low in a minor low. For example, the start and end of a double bot- tom is the lowest low in each valley. Swing trader A trader who tries to profit by trading the move from peak to valley, or valley to peak. Usually holds positions for days, not months. Tall or short patterns | Formation height measured by taking the difference between the highest high and the lowest low in the chart pattern and then dividing the difference by the breakout price to get a percentage ofGlossary and Methodology 991 height to price. The median value separates the difference between short (values below the median) and tall (values above the median), ‘Term—short, intermediate, or long A short-term trend is one that lasts up to 3 months. Intermediate-term trends last between 3 and 6 months Long-term trends are those lasting over 6 months ‘Throwback A temporary retrace after an upward breakout, Prices decline to, or come very close to, the breakout price or the formation trend line within 30 days after the breakout. White space must appear between the hooking price action of the throwback and the breakout price. See Figure 1 ‘Trend high Used for flags and pennants, the minor high that begins or ends a price trend. Trend low Used for flags and pennants, the minor low that begins or ends a price trend. ‘Trend start Defined as where a price trend begins. To find the tend start, begin at the formation start and move backward in time. If prices climb leading away from the formation, find the highest high before prices close 20% or more below and before the highest high. When this occurs, the highest high marks the trend start. If prices drop leading away from the chart pattern (working back- ward in time), find the lowest low before prices close 20% or more above and before the lowest low. When that occurs, the lowest low marks the trend start, Price overshoots and undershoots just before the chart pattern are ignored, For flags and pennants, the minor high or low closest to the start of the trend leading to the flag or pennant is used (not a 20% trend change). Ultimate high The highest high before prices decline by 20% or more, ‘measured from the highest high to the clase or a close below the formation low. Ifthe stock had not suffered a 20% decline before the end of the data (because it was too recent), then the highest high to that point was used Ultimate low ‘The lowest low before a minimum 20% price rise, measured from the lowest low to the dose, or a close above the formation high. If the stock had not suffered a 20% rise before the end of data, then the lowest Tow to that point was used. Undershoot When price suddenly drops a few days before the beginning of the pattern, Sometimes called “overshoot.” Volume shape The pattern volume makes. Consists of several shapes: domed, U, flat, rising, falling, and random, The last four I call random and lump together because they occur infrequently. For short patterns, if no volume shape appears, look to the left and right of the pattern to see if volume is part ofa larger shape. Ifso, use that shape in your analysis. For large chart patterns, if multiple shapes are present, use the most recent. See Figure 1 Volume trend Arising volume trend means volume generally increases over time; a falling volume trend is one that recedes over time. The slope of a line found using linear regression on volume data determines the trend.992 Glossary and Methodology Wide pattern Measured from the formation start to the end, a horizontal measure, in time, Patterns longer than the median length are wide ones; shorter than the median length are narrow ones. Yearly position Where the breakout occurs most often in the yea range. To determine the yearly price range, start from the day before the breakout and find the highest high and lowest low over the prior 12 months. The yearly price range is the difference between the yearly high and low price. The yearly price range is divided into thirds and compared with the breakout price. Yearly position, performance Same as yearly position (see that entry) except performance is mapped (the move from the breakout to the ultimate high or low) over the yearly price range using a frequency distribution. Note regarding serious inquiries: If you would like to contact me, e-mail me at thul@hotmail. Make sure you fill in the subject line with something like “Chart pattern question” so I do not mistake it for spam and toss it unread. I will try to reply, but it may take weeks, so your patience will be appreciated,Index of Chart and Event Patterns Broadening Bottoms, page 11 i i Ik, ! a ‘i Broadening Formations, Right- Angled and Ascending, page 28 Broadening Formations, Right Angled and Descending, page 45 iy fh mr i ! “Ly i — Broadening Tops, page 63 jel Broadening Wedges, Ascending, page 81 Broadening Wedges, Descending, page 98 Bump-and-Run Reversal Bottoms, page 115 rae Bump-and-Run Reversal Tops, page 132 tt 993994 Index of Chart and Event Patterns Closing Price Reversal epee Downend Cup with Handle, page 149 Cup with Handle, Inverted, page 164 Dead-Cat Bounce, page 829 4 Dead-Cat Bounce, Inverted, page 844 h il \ Diamond Bottoms, page 179 Diamond Tops, page 196 Ar, Double Bottoms, Adam & Adam, page 213 Double Bottoms, Adam & Eve, page 229 1 io 1 Holt gt i Double Bottoms, Eve & Adam, page 244 Double Bottoms, Eve & Eve, page 259 Double Tops, Adam & Adam, page 275Double Tops, Adam & Eve, page 291 Double Tops, Eve & Adam, page 307 Double Tops, Eve & Es page 321 Flags, page 335; Flag, Earnings, page 893 Flags, High and Tight, page 350 tn i \ iu 1 Gaps, page 362 M My lil Index of Chart and Event Patterns 995, Head-and-Shoulders Bottoms, page 374 re Moe El Ih ht fl ‘ Head-and-Shoulders Bottoms, Complex, page 390 Wp hf mnt sos tyloss Head-and-Shoulders Tops, page 405 “ i, f hn [_ Ith, 7 ; Head-and-Shoulders Tops, Complex, page 421 now meet ttl ul! Ti Hook Reversal thee996 Index of Chart and Event Patterns Horn Bottoms, page 438 \ ! \l 4 4 Horn Tops, page 451 Inside Days | 1 Island Reversals, Bottoms, page 464 Island Reversals, Tops, page 464 Key Reversal ‘Measured Move Down, page 496 ram, ‘Measured Move Up, page 510 i! One-Day Reversals, Bottoms hl ‘yu One-Day Reversals, TopsOpen-Close Reversal Outside Days ! Pennants, page 5: tat I Pipe Bottoms, page 536 Pipe Tops, page 550 Pivot Point Reversal 997 Index of Chart and Event Patterns Rectangle Bottoms, page 563 My i / hitb ta ag yet yee Rectangle Tops, page 579 hi Rounding Bottoms, page 595 Rounding 1 mo Ps, page 608 Scallops, Ascending, page 624 \ ww Scallops, Ascending and Inverted, page 639 a Scallops, Descending, page 654 \ ‘ay998 Index of Chart and Event Patterns Scallops, Descending and Inverted, ‘Triangles, Descending, page 730 Shark-32 lI Spikes or Tails aati, att ‘Triple Tops, page 779 Three Falling Peaks, page 684 i ty Feat yal hy Wedges, Falling, page 795 ing Valleys, page 698Index of Chart and Event Patterns 999 Weekly Reversals, Downside Wide-Ranging Days wth Weekly Reversals, UpsideIndex Numbers in bold type refer to chapters; numbers in italics refer to illustrations. Adam & Adam double bottoms, 213, 263, 966, 972, 974, 980, 994 double tops, 275, 966, 970, 974, 979, 994 Adam & Eve double bottoms, 229, 263, 265, 966, 971, 974, 979, 994 double tops, 291, 866, 966, 970, 974, 979, 995 top, 278 Announcement day high-low range, 890, 892 Announcements, market impact, 363, 832-833, 881. See alto Bad earnings surprise; FDA drug approvals; ‘Good earnings surprise; Same-store sales Area gaps, 362-367, 371 Arithmetic scale, 118 Ascending broadening wedges, see Broadening wedges, ascending Ascending triangle, see Triangle, ascending Average, defined, 985 Average rise or decline, see also Results Snapshot and Stavstcs section in each chapter defined, 985 performance rank in statistics summary, 965-981 Bad earnings surprise, 833, 855, 969, 973, 977, 981 Bear market, defined, 985. See alo Statistics summary, bear market Bounce phase, 274, 499, 617, 623, 829, 831, 836, 840, Bowl, scallop, 257, Bowl shape, 392, 597, 598, 626, 636, 637, 638, 657-658, 672-673 Breakaway gap, 362-369, 371-373, 404, 468, 519, 521, 592 Break-even failure rate, defined, 985 See alo Failure rates; Results Snapshot and Statistic section in each chapter Breakout, defined, 983, 985, See abo specific types of chart patterns Breakout day gaps, 374, 383, 522, $35, 594, 601, 609, 623, 638, 669, 712, 729, 793, 986 Breakout gap, 983. See alo Gap(s) defined, 986 Breakout point, 15 Breakout volume, defined, 986, See alse ‘Volume/volume trends heavy/light performance, 984 Broadening bottoms, 11, 13, 15, 16, 21 64, 66, 965, 971-973, 979-980, 993 Broadening formations right-angled and ascending, 28, 668, 767, 965, 971-973, 978, 980, 993 10011002 Index Broadening formations (cont) angled and descending, 45, 64, 965, 970, 972, 974, 978-979, 993 Broadening patterns, defined, 985 Broadening tops characterized, 12, 14, 46, 63, 387, 434-435, 767, 870, 965-966, 971-972, 974, 978, 980, 993 orthodox, 64, 68, 69 -angled, 162-163, 782 right-angled ascending, 161, 781-782 Broadening wedges ascending, 81, 426, 427, 428, 966, 970-971, 974, 979-980, 993 descending, 98, 388, 494, 781, 785, 966, 970, 972, 974, 978, 980, 993 Broker, stock ratings by, see Stock downgrades; Stock upgrades Bull market, defined, 986, See also Statistics summary, bull market Bump-and-run reversal bottoms, 115, 966, 971, 974, 979, 985, 993 defined, 988 dual, 123-124, 136, 137, 140, 141, 142 implications of, generally, 150 multiple, 123, 142 tops, 132, 494, 966, 970, 974, 977, 985, 993 Bump height, 120, 136-137 Bump phase, 118-119, 130, 134, 135, 138, 243, 514, £85 Busted patterns, see alo Results Snapsbot and Statistics and Trading Tactics sections in each chapter best performance guidelines, 27, 43, 697, 747, 764, 793, 949 defined, 982, 986 Buy. 396, 443, 585, 784, 964 Buy signals, 877, 904-905, 917-918, 931-932, 942, 944, 945, 953, 961 Buy-the-dip investors, 84, 407 Candlesticks, Fibonacci, and Chart Pattern Trading Tools (Fischer/Fischer), 684, 698, ind-hold strategy, 7, 156, 328, 381, Capital gains taxes, 851 Change after trend ends, se also Results Snapshot and Statistics and Trading Tactics sections im each chapter best performance guidelines, 28-29, 45-46, 63-64 defined, 982, 986 implications of, 81-82, 98-99, 132, 149, 164, 179-180, 196-197, 213 229, 244, 259, 336, 438, 451 performance rank in statistics summary, 965-981 Channel, 498, 500, S11, $14, 762-763 Closing price reversal, 994 Closing the gap, 211, 363, 830, 835-836, 898 Coils, 748 Commodities, 799-800 Commodity channel index (CCD, 709-710, 842, 906 Common gaps, 364-365 Comparable store sales, 908, 921 Complex head-and-shoulders formations bottom, 390, 409, 467 characterized, 461, 612, 967, 969, 972, 975, 979, 985, 995 tops, 421, 609 Confirmation level, defined, 987 Confirmation line, 214, 215, 218, 226, 235, 250, 253, 283, 287-289, 296-297, 303, 308, 319, 324, 326, 685, 688, 701, 710, 769, 777, 780-781, 866 Confirmation point, characterized, 65, 326, See abwo Statistics and Trading Tactics sections im each chapter Confirmation price, 233-234, 247-248, 262-263, 268, 279-280, 293, 295-297, 311, 313, 317, 325-326, $52-$53, 672-673, 686-687, 701-702, 776-777, 895, 897-898, 920 defined, 987 Congestion, 20, 200, 217, 231, 311, 363, 440, 453, 349, 565, $82, 588, 740, 782, 786 Consensus estimate, 947Consolidation(s), 85, 102, 128, 219, 350, 351, 353, 364, 365, 378, 393, 394, 410, 453, 468, 499, 540, 551, 553-554, 568, 580, $92, 593, 595, 700, 732, 777, 816, 893, 918, 948 defined, 987 Continvation(s), se alse Results Snapshot and Statistics and Trading Tactics sections in each chapter best performance guidelines, 607, (669, 826, 879, 907, 920, 933 characterized, 4546, 115, 149, 180 196, 335-336, 350, 362-363 defined, 982, 987, Continuation gap, 362-363, 369-371, 373 Corrective phase, 96, 214, 231, 247, 496-499, SO1-510, 512-518, 520-521, 592-593, 702, 785, 809 defined, 987 Countertrend, generally breakouts, 35 pattern, defined, 987 trades, 615, 622, 720, 957 Cup handle, 156, 151-152, 159, 162, 167 Cup with handle formation characterized, 115-116, 117, 149, 226, 227, 966, 972, 974, 980, 985, 994 defined, 985 inverted, 164, 966, 970, 974, 977, 985, 994 Curving volume trend, 597-598, 611 Daily charts, 537-538, 641, 672 Daily seale, 597, 611 Daily trading range, 113, Day trading, 606-607 Dead-cat bounce characterized, 16, 274, 372, 434, 436, 492, 605, 752, 829, 954, 969, 973, 97, 981, 994 defined, 827 inverted, 844, 969, 973, 977, 981, 994 Decline phase, 831-832, 834-837 Descending broadening wedges, see Broadening wedges, descending 1003 Index Diamond bottoms, 179, 197, 211, 966, 969, 971, 974, 977, 979, 985, 994 tops, 193, 196, 266, 966, 970, 972, 974, 978, 979, 985, 994 Dome-shaped volume, see al Statistics setion in each chapter best performance guidelines, 44, 62, 228, 258, 389, 420, 638, 669, 778, 794 characterized, 46, 50, 183, 210, 213, 309, 323, 468, 598, 613, 625, 627, 642, 643, 654, 657, 685, 814 defined, 991 performance Double bottoms ‘Adam & Adam, 213, 263, 966, 972, 974, 980, 994 [Adam & Eve, 229, 263, 265, 966, 971, 974, 979, 994 characterized, 213, 439, 606, 791, 793, 918, 919, 987 defined, 985 Eve & Adam, 244, 263, 265, 966, 972, 974, 980, 994 Eve & Eve, 216, 259, 966, 971, 974, 980, 994 Double tops ‘Adam & Adam, 275, 966, 970, 974, 979, 994 [Adam & Eve, 291, 866, 966, 970, 974, 979, 995 characterized, 65, 96, 116, 136, 145, 147, 168, 292, 295, 298, 303, 441, 453, 559, 754, 530, 866, 946 defined, 985 failures, 280 Eve & Adam, 307, 966, 970, 975, 978, 995 Eve & Eve, 321, 966, 969, 975, 978, 995 Dow Jones industrials, 3 Downgraded stock, see Stock downgrades Downhill run, 134, 135-136 Dual bump, 123-124, 136, 137, 140, 141, 142, 987 Dual head, 392, 402, 422 istics summary, 9841004 Index Dual shoulder(s) characterized, 467 complex head-and-shoulders formation, 391 Dual spike, 546 Duplicate heads, 467 Earnings estimates, 896, 939, 948 Earnings surprise(s) bad, $33, 855, 969, 973, 977, 981 defined, 827 good, 868, 969, 977, 981 End (pattern end), defined, 987 Entry point, 697, 708, 778, 920, 960. See also Buy signals Eve & Adam double bottoms, 244, 263, 265, 966, 972, 974, 980, 994 double tops, 307, 966, 970, 975, 978, 995 top, 278 Eve & Eve double bottoms, 259, 919, 966, 971, 974, 980, 994 double tops, 321, 966, 969, 975, 978, 995 Event decline, 829 Ex-dividend gap, 363, 365-366 Exhaustion gap, 362-364, 366, 370-372, 467, 592 Existing store sales, 908, 921 Exit point, 920, 948. See also Sell signals Expanding triangle, 64 Expectations, 909 Failure rates, 983. See alo Break-even failure rate; Staritcs section in each chapter best performance guidelines, 27, 43, 62, 80, 97, 113, 131, 148, 163, 193, 211, 227, 243, 257, 274, 289, 320, 349, 361, 404, 420, 450, 462, 479, 494, 535, 562, 578, 594, 607, 638, 653, 669, 682, 697, 710, 729, 747, 778, 810, 826, 866, 879, 920, 964 defined, 964, 983, 987, 990, 993 implications of 120, 297, 441 performance rank in statistics summary, 965-981 Falling peaks, 872 Falling wedge, see Wedge, falling False breakout, 86 FDA drug approvals, 827, $31, 880, 946, 969, 977, 981 Federal Reserve, 785, 800 Fibonacci retracement, 169, 176, 845 Financial news, information resources, 923, 936, 951, 954 First leg measured move down, 496-498, 501-510 measured move up, 511-519, 521 5% failure, 52-53 (04, 106, 137, 185, 185, 235, 250, 251, 255, 281, 303, 317, 332, 380, 454, 540-541, 553, $84, 626, 719, 754, 755, 769-770, 784, 799, 815, 816 Five-point reversal, 12-13, 63-64, 68, 69 Flag(s) characterized, 79, 150, 151, 335, 884, 966-967, 970, 972, 975, 978, 980, 985, 991, 995 defined, 985 high and tight, 350, 971, 975, 979, 985, 995 Flog, earnings, 827, 871, 893, 969, 973, 977, 981, 995 Flagpole, 895-896, 901 Flat base, 170, 353, 433, 499, 580, 987 Flat bottom formations, $76 Flat shelf, 266, 272 Flat top formations, 592-593 Food and Drug Administration (FDA) approvals, see FDA drug approvals Formation end to breakout, 20, 983, 987 Formation length, average, 984. See also Statistics section in cach chapter Frequency distribution, see al Statistic section in each chapter best performance guidelines, 949 defined, 964, 983, 987 event decline, 835, 838-839 Fundamental analysis, 3, 5, 668, 932 Fundamentals, significance of, x, 266, 274, 349, 371, 567, 614, 637, 660, (662-663, 785, 824, 842, 910, 918, 48Gap(), se abo Statistics seton in each chapter area, 362-367, 371, 896, 898 alignment, 481 best performance guidelines, 4, 62, 97, 114, 148, 178, 195, 212, 535, 594, 623, 638, 669, 682, 710, 729, 793, 810, 826, 843, 964 breakaway, 309, 362-369, 371-373, 468, 519, S21, 592 breakout day, 28, 45, 63, 98, 99, 179, 196, 197, 374, 404, $22, $35, 594, (609, 623, 638, 669, 712, 729, 793 characterized, 274, 308, 362, 390, 404, 464-467, 589, 624, 625, 654, 655, 831, 832, 845, 904, 910-913, 922-923, 925-927, 932, 938, 944-945, 947-948, 963, 995 common, 364 continuation, 309, 362-363, 365-366, 369-371, 373 defined, 987 excdividend, 363, 365-366 exhaustion, 309, 362-364, 366, 370-372, 467, 592 islands, long, 489-190 measuring, 365 pattern, 364-365 performance, defined, 987 performance statistics summary, 967, 971, 975, 980, 983 remaining, 363 runaway, 365 size of, 368, 983 unaligned, 484 Good earnings surprise, 868, 894, 969, 977, 981, Half-staff flag formation, 336, 338-339, $21, 525-527, 737, 761, 919 Handle, se also Cup handle; Cup with handle formation characterized, 152, 597-598, 602, (604-605, 636 performance, defined, 988 retrace, defined, 988 Head-and-shoulder formations bottoms, 184, 185, 257, 374, 409, 669, 717, 767-768, 808-809, 852, 853, 967, 971-972, 975, 979, 985, 995 1005 Index characterized, 136, 175-176, 279, 292, 306, 853-854, 872, 885 complex, 377, 409, 967, 969, 972, 975, 978-979, 985, 995 complex bottoms, 390 complex tops, 421 consolidation, 410 symmetry in, 377-378 tops, x, 175-176, 199, 377, 408, 411-412, 501, 441, 753, 780, 781, 859, 886, 967, 969, 975, 978, 985, 995 tops, unsymmetrical, 879 Height of pattern, see alo Statistics section in each chapter| defined, 964 lead-in, 120, 135-137, 144-146, 988, Herd instinct, 613, High and tight flags, 350, 971, 975, 979, 985, 995 High/low trend, 528-530 Holding period, 300 Hom bottoms, 438, $37, 967, 972, 975, 979, 985, 996 implications of, 263 tops, 422, 451, 537, 967, 970, 975, 978, 985, 996 Hoc te Make Money in Stocks (O'Neil), 150, 352 Teup, see Cup with handle formation inverted Industry trends, 225-226, 241-242, 255-257, 272-273, 287-288, 303~304, 317, 332, 719, 784, 840, 87 Inner cup, 160-162 Inner head-and-shoulder bottoms, 401-403 Inner head-and-shoulders formations, 425, 426 Inside days, 996 Insider buying, $67 Insider selling, 926, 946 Insider trading, 676 Inside week, 450, $46, 549, 558-559 Interest rates, 785, 800 Intermediate-term trend, 9911006 Index Intraday charts, 641 Intraformation trading, 41-42, 61, 72-74, 1M, $77 Intrapattern trade, 761-762 Intrinsic value, 610 Inverted dead-cat bounce, 844 Investment style, 5-7, 622 Island reversals bottom, 466-467, 469-470, 477, 996 characterized, 464, 482, 484, 967, 971-972, 975, 978, 980, 985 top, 466-467, 469-470, 477, 996 Islands long, 480, 967, 970, 972, 975, 978-979, 985, 996 short, 491-492 J-shape formations implications of, 626-628, 631, 640-642, 657, 886, 890-891 inverted, 883-884, 892 Key reversal, 996 Last leg, 496, 510 Lead-in phase characterized, 118, 119, 127, 134, 135-136, 515 height, 118-120, 135-137, 144-146, 988 Left shoulder, 199, 377-380, 385, 389, 391-392, 400-401, 405-406, 409-410, 414-416, 419-420, 424, 426, 433, 461, 781 Limit orders, 194, 709-710, 809, 851, 877 Linear regression, 100, 200, 280, 423, 762, 988 Logarithm scale, 167 Long-term investors, 7 Long-term trend, 991 ‘Market orders, 778, 851 Market rallies, 103, 263, 846 Marker trends, trading with, 27, 40, 44, 53, 80, 89, 96, 156, 195, 255, 272-273, 287, 304, 317, 349, 569, 586, 661, 666-667, 692, 729, 762, 809, 877, 471-472. See alto Trends, trading with Measured move cascading, 499 down, 175-176, 496, 497, 498, 499-501, 504-507, 967, 969, 975, 977, 986-987, 996 up, 214, 231, 295, 10, $12, 514-519, 967, 971, 975, 979, 986-987, 996 Measure rule, see also Target price, calculation of; Trading Tactics section in each chapter, characterized, 39 defined, 988 Measuring gap, 365 Median, defined, 39, 988 Median height, defined, 984. See alse Statistics section in each chapter ‘Median length, defined, 984. See alse Statistics section in each chapter Megaphone, 11, 14, 32, 63, 85-86, 101 ‘Minor highs, see abo Statistics section in each chapter best performance guidelines, 26, 113 defined, 989, 991 implications of, 181, 502, $11, 534, 581, 718, 735, 754, 962 Minor lows, see alo Statistics section in each chapter best performance guidelines, 13, 243 defined, 988-989, 991 implications of, 47, 181, 264, 392, 50: 511, 581, 718, 754, 962 Momentum, 20, 29, 31, 66, 133-134, 136, 147, 181, 243, 351, 376, 398, 404, 407, 489-490, 515, 543, 587, 591, 602, 610, 613, 663, 681, 737, 750, 799, 862, 916, 925, 958 Momentum traders/trading, 65, 66, 84, 103, 144, 295, 705 ‘Money management, 5, 948 Moving averages, 372, 453, 842, 877 ‘Multiple bumps, 123, 142 ‘Multiple heads, 391, 394, 421 Multiple shoulders, 391, 393-394, 408, 421, 423, 424-425 ‘Multiple tops, 793 ‘Narrow patterns, see also Starstcs section in each cbapterbest performance guidelines, 62, 97, 114, 131, 178, 258, 274, 290, 320, 334, 361, 389, 404, 420, 495, 623, 653, 697, 747, 764, 794, 907 characterized, 11, 99, 164, 197, 238, 244,307, 321 defined, 984, 989 Neckline, 184, 257, 306, 377-379, 382, 385-387, 390-395, 400-405, 406, 407-408, 410-411, 413, 416-418, 420, 423, 425-426, 429, 432-435, 437, 442, 695, 717, $09, 989 Number of formations, defined, 17, 982. ‘See also specifi types of chart patterns (One-day reversals, 66, 147, 467 O'Neil, William J., 150-152, 352 Orthodox broadening top, 63-64, 68, 69 Outside days, 997 Outside week, 451, $46, 558-559 Overshoot, 13, 989 Panic selling, 334 Partial decline best performance guidelines, 44, 113, 578, 594 defined, 989 failure, defined, 989 implications of, 13, 20-21, 24, 37-39, 41-42, 44, 50, 57-58, 63, 72, 74, 77-78, 101, 102, 107-109, 111, 113, 579, 590-591, internal, defined, 988 intraformation, 21-22, 37, 5 109 Partial rise best performance guidelines, 27, 44, 62, 97, 578, 594 defined, 990 failure, defined, 990 implications of, 20-21, 24-25, 27, 37-39, 41-42, 44, 49-50, 57-59, 61-62, 72, 74, 84-87, 90-92, 94-95, 97, 107-109, $74-575, 578-579, $80, 590-591, 59% internal, defined, 988 intraformation, 21-22, 37, 90, 107, 109 58, 107, 1007 Index Pattern gaps, 361-365 Pennants, 117, 341, 522, 660, 737, 761, 815, 846, 877-878, 884, 893, 895, 967, 970, 972, 975, 97, 980, 986, 991, 997 Percentage basis, 521 Percentage mecting price target, defined, 990. See al’Target price; Results Snapsbot in each chapter Perfect trades, 8, 982 Performance rank, defined, 990. See also Results Snapsbot in each chapter Pipe formations bottoms, $36, 967, 971, 975, 979, 986, 997 tops, $50, 967, 970, 975, 997 Plunge phase, $31 Point and figure chart, $45 Position traders, 7, 493, 990 Postbounce decline, $29 Pre-formation rise/drop, 591, 594 Premature breakout, 32-33, 50, 85, 87, 193, 712, 713, 715, 749, 753, 816, 962, 990 Price decline, 129, 324325, 988 Price rise, maximum, defined, 983, 988 Price trend, see Identification Guidelines in each chapter Profit margin, 542 Progressive stops, 42, 617, 623 Pallbacks, see also Results Snapsbot and Stavstcs section in each chapter best performance guidelines, 44, 97, 113, 148, 178, 195, 211, 290, 306, 319320, 334, 349, 420, 436-43 462, 479, 494, 509, 535, 562, $78, 594, 623, 669, 682, 697, 729, 747, 764, 793, 810, 826, 866, 920, 949, 964 characterized, 30, 46-47, 180-181, 197, 336, 422, 780, 878, 911, 963 defined, 983, 990 performance rank in statisties summary, 965-981 77, 986, Qualifying, defined, 9901008 Index Random-shaped volume, 984, 991. See also Statistics section in each chapter RIC performance, defined, 990. See alo Continuation(s); Reversals Rebounds, 111, 176, 183, 282, 290, 543, 567 Rectangle bottoms, $63, 588, 967, 970, 972, 975, 978, 980, 986, 997 countertrend, 570, 587 horizontal, 337 short, 336 symmetrical, 338 tops, $79, 967, 970, 972, 979-980, 986, 997 Reference day, 846-848, 851, 853 Relative strength, 151 Relative strength index (RSD), 709-710, 842, 906 Remaining gap, 363 Resistance level/zone, see alo Statistics section in each chapter best performance guidelines, 27, 44, 96-97, 211, 227, 274, 349, 361, 450, 479, 535, 549, 682, 778, 793, 907, 933 characterized, xi, 29, 31, 33, 47, 49, 50, 51, 209, 164, 423, 507, 508, 519, 520, 565, 598, 632, 650, 651, 656, 659, 668, 680, 713, 732, 898, 947-948 Retest of the low, 448, 461, 493, S41, 669, 732, 846 Retracement, 48, 67, 103, 167, 174, 336, 467, 496-497, 502, 504-505, 510, 512, 514, 516, 518, 538, 547, 549, 552, 621, 641, 652, 657, Reversals, se abo Results Snapshot and ‘Statistics section in each chapter best performance guidelines, 131, 195, (669, 920, 933 characterized, 11, 46, 64, 81, 84, 100, 325, 455-456, 576, 593, 592, 783, 864, 871 defined, 982, 990 five-point, 63-64, 69 island, se Island reversals one-day, 26, 47, 66, 242, 467, $48, 964 one-day, bottoms, 996 one-day, tops, 996 open-close, 997 pivot point, 997 weekly, 999 upside, 999 Right-angled and descending broadening chart, see Broadening formations, ight-angled and descending Right shoulder, 199, 377-380, 382, 385-386, 392, 397, 400-402, 404, 406, 408-410, 414-4117, 419, 423-424, 426, 429, 432-433, 442, 461, 467, 781, 854 Rising wedge, see Wedge, rising Risk management, 195, 211, 897, 925 See also Stop-loss orders Risk/reward ratio, 78, 209-210, 300, 347-348, 803 Rounded bump, 135-136, [41 Rounding bottoms, 116-117, $95, 967, 971, 975, 979, 986, 997 Rounding tops, 608, 967, 970, 972, 975-976, 978, 980, 986, 997 Rounding turns, 595, 609, 623. See ale Rounding bottoms Rumors, market impact of, 84-85, 881, 925, 938, 954 Runaway gaps, 365 Same-store sales bad, 908, 969, 973, 97, 981 defined, $27 good, 921, 969, 973,977, 981 Saucers, 151, 595-596, $98, 600, (604-607, 655 Saw-tooth formations, 499, 513 Scallops ascending, 256, 257, 624, 656, 913, 967-968, 971-972, 976, 979-980, 986, 997 ascending and inverted, 639 characterized, 499 descending, 654, 791, 968, 970, 972, 976, 978, 980, 986, 997-998 descending and inverted, 670 inverted, 609, 611, 968, 970-971, 976, 978, 980, 986, 997-998Second leg measured move down, 497, 498, 499-501, 504-507, 509 measured move up, 512, 514-519, 521 Selling pressure, 31, 48, 84, 133-134, 182, 260-261, 597, 610, 613, 714, 750, 937 Sell line, 144-146, 148, 243, Sell signals, 33, 494, 533-535, 652, 726-727, 846, 863-865, 878, 883, 904-905, 917-918, 932, 943-945, 952, 961, 963 Shape, see specific types of chart patterns Shark-32, 998 Short patterns, see also Statistics section in each chapter best performance guidelines, 44, 114, 131, 163, 195, 212, 227, 290, 306, 361, 389, 404, 420, 463, 653, 794, 810, 879, 933, 949 defined, 984, 990-991 Short sales, recommendations for, 22S, 33, 36, 52, 89, 95, 105, 111, 156, 175-176, 221, 251, 283 295-296, 300, 303, 305, 318, 327-328, 332, 408, 412, 417, 419-120, 433, 435, 438, 455-456, 484, 507, $09, 526, 528, 557, 561-562, 567, 592, 620-621, 668, (680-681, 703, 726-727, 770, 78: 794, 804, 824, 840, 842, 864, 86° 881, 883, 886, 891, 899, 915, 917-918, 922, 925, 927-928, 932-933, 942, 944-948, 953, 960, 963-964 Short stop, 24-25 Short-term traders, 744, 824 Short-term trend, 991 Simple ARC correction, 496 Size, see alco Height of pattern; Width of pattern significance of, 39 statistics, 2. See alo specific sizes Soft market, implications of, 475 Spike(s) double price, 440 downward, one-day, 263, 264 illustration of, 99 1009 Index ‘one-day, 47, 218, 230, 263, 292, 304, 310 short, 231-232 size of, 446 twin, 214 two-day, 292 Stair-step pattern, 422, 640, 686, 696, 952 Standard & Poor's 500, changes in, see al Statistics setian in each chapter best performance guidelines, 494, 906 characterized, 5 defined, 982, 990 Start (pattern start), defined, 990 Statistics summary bear market, 973-981 bull market, 965-973, Stochasties, 842 Stock downgrades, 827, 833, 870, 933, 969, 973, 977, 981 Stock upgrades, 827, 950, 969, 973, 977, 981 Stop-loss orders, recommendations for, xi, 24-26, 42-43, 52-53, 59, 61, 77-78, 95, 111-113, 127, 130, 147, 160, 162, 164, 169, 177, 194-195, 202, 211, 280, 289, 319, 355, 357, 359-360, 371, 386-387, 401-408, 412, 419, 435, 448, 472, 493, S18, 547, 561, 585, 607, 615, 630, (636-637, 666-667, 689, 770, 775, 777, 780, 791-793, 824, 861, 864, 899, 900, 906, 914, 918, 928, 932, 945, 961 Supply and demand, 102, 133, 581-582, 713-714 Support level/zone, see als Statistics section in each chapter best performance guidelines, 27, 4, 148, 178, 211, 320, 334, 349, 420, 479, 509, $35, 651-652, 578, 729, 866, 949 characterized, xi, 29, 31, 33, 47, 48, 49, $0, 51, 147, 209, 502, 507, 508, 519, 520, 565, 567, 650, 651, 656, 668, 680, 713, 732, 963 Support and resistance, 198, 200, 206, 2091010 Index Swing measurement, 510, See alo ‘Measured move, down Swing traders, 288, 345, 518, $83, 750, 851, 895, 916, 990 Symmetrical triangle, see’ symmetrical Symmetry complex head-and-shoulder tops, 393-394, 409, 424.426 head-and-shoulders top, 408 angle, Tails, 998 Tall patterns, se also Results Snapshot and Statistics section in each chapter best performance guidelines, 27, 44, 62, 80, 97, 114, 131, 163, 178, 1 212, 227, 243, 290, 306, 320, 334, 349, 361, 389, 404, 420, 437, 450, 479, 495, 535, 562, 578, 594, 607, 623, 638, 653, 669, 683, 710, 747, 764, 810, 826, 867, 907, 920, 933, 949, 964 defined, 984, 990-991 ‘Target price, calculation of, see Trading “Tactics (measure rule) section in each chapter ‘Technical analysis, x, 3, 5- 872, 932, 948 ‘Tecbnical Analysis of Stocks and Commodities, x Technical indicators, 317, 349, 708, 910 ‘Term, short/intermediate/long, defined, 991 Terminology, 985-992 ‘Terrorist attack (9/11/01), market impact, 484, 799 ‘Three-bar patterns, 446 ‘Three falling peaks, 684, 872, 968, 970, 976, 978, 986, 998 Three rising valleys, 698, 968, 971, 976, 980, 986, 998 ‘Throwbacks, see also Results Snapshot and Statistics section in each chapter best performance guidelines, 44, 97, 113, 131, 195, 211, 227, 243, 258, 274, 349, 361, 389, 404, 450, 479, 594, 607, 623, 653, 669, 710, 729, 747, 810, 879, 892, 907, 933 408, 614, characterized, 47, 51, 18-186, 276, 869 defined, 983, 991 performance rank in statistics summary, 965-981 Touches, se specific types of chart patterns Trading Classic Chart Patterns (Bulkowski), 215, 644, 853 ‘Trading costs, 900, 941 ‘Trading style, xi, 371-372 “Trend change indicators, 46, 83, 171, 332-334, 461, 477-478, 481, 502-503, 551, (625-626, 675, 709, 734, 842 1.2.3 rule, 844, 846 ‘Trend channel, ee Channel ‘Trend high, defined, 991 ‘Trend lines, 66-67, 470, 47, 652, 695-696, 707, 709, 797-798, 842, See also specific types of chart patterns ‘Trend low, defined, 991 Trend reversal, 100, See also Reversals ‘Trends, trading with, 925, 933, 957 ‘Trend start, defined, 991 Triangle apex, 297, 717, 723, 734, 741, 751, 759, 761, 763-764, 910 ascending, 29, 103, 116, 305, 711, 813, 968, 970, 972, 976, 978, 980, 998 defined, 986 descending, 103, 125, 442, 565, 730, 968, 970-971, 976, 978-979, 998 expanding, 63 symmetrical, 181-182, 194-195, 338, 484, 519, $21, 524, $26, 554, 644, 708, 709, 748, 910, 919, 922, 968, 970, 972, 976, 979-980, 998 symmetrical bottoms, 994 symmetrical tops, 998 “Triple bottoms, 217, 249, 377, 765, 968, 971, 976, 980, 986, 998 Triple tops, 116, 136, $59, 754, 779, 919, 968, 970, 976, 978, 986, 998 ‘Twin peak formation, 65, 279-280, 289, 293, 30, 323, 324, 325, 452-453, 552, 830. See ako Double tops “Twin spikes, 214Ubimate high, days to characterized, 90, 121-123, 156-158, 220-221, 236, 238, 252-253, 268, 355, 357, 361, 381, 383, 399, 404, 443, 445, 542-544, 549, 600-602, 624, 638-639, (646-648, 653, 703-705, 771, 773, 873-875, 899-902, 927-928 defined, 982, 987, 991 frequency distributions, se Frequency distributions Uhimate high/low, days to, 35, 37-39, 54, 70, 72, 74, 88-89, 104, 106, 108, 187, 190, 203-204, 341, 34, 472, 474, 479, 486-487, 489, 569, 572, 585-86, $88, 614-615, 617-618, (630-631, 660-664, 719-721, 723, 738-739, 741, 756-757, 801-802, 804, 817-818, 820, 887-889, 940-941, 943, 956-959 Ultimate low, days to characterized, 54, 80, 82, 90, 138-139, 144, 171, 178, 282-283, 298-299, 301, 312-315, 319, 321, 327-329, 334, H1IA12, 414, 428-431, 456, 458, 555-857, 579, 675-677, 683, 690-692, 729, 785-786, 788, 860-862, 913-916 defined, 982, 987, 991 frequency distributions, se Frequency distributions Undershoot, 13, 991 Upgraded stock, see Stock upgrades Uphill run, 118-119, 309, 641, 737 U-shaped volume, see also Statistics section in each chapter, best performance guidelines, 62, 80, 114, 163, 306, 319, 361, 389, 404, 420, $09, 535, 607, 623, 638, 683, 697, 710, 778, 794 defined, 984, 991 characterized, 45, 50, 64, 67, 69, 99, 183, 214, 323, 340, 374-375, 468, 476, 483, 484, 496, 497, 595, 609, 612, 626, 670, 685, 699, 731, 814 Valleys, see‘Three rising valleys Value investors, 84, 750 1011 Index Visibility, significance of, 440, 442 Volatility, impact of, 169, 306 Volume/volume trends, se also Results Snapshot and Statistics section in each chapter best performance guidelines, 27, 62, 80, 114, 195, 243, 258, 319, 349, 389, 404, 420, 549, $65, 607, 623, 683, 710, 719, 729, 794, 879 characterized, 31, 100, 137, 305, 322, 376, 395, 452, 565, $81, 610, 699, 713, 718, 728, 732, 736, 856, 894 defined, 984-988, 991 falling, 984, 991 heavy lefi/right performance, defined, 988 performance, by shape, 984 rising, 984, 991 shape, defined, 27, 991. See alo ‘Dome-shaped volume; Random- shaped volume; U-shaped volume statistics, 23, 40 ‘Warning line, 144146 ‘Warning signals, 52-53, 424, 442 Weakness, indicators of, 40, 44, 131 227, 258, 407, 416, 472, 495, S44, 549, 560, 902 Wedge apex, 796-797, 804, 815, 820 ascending, 811 ascending broadening, see Broadening wedges, ascending countertrend, 817, 820 defined, 986 descending broadening, see Broadening wedges, descending falling, 117, 513, 525, 795, 812-813, 968, 971-972, 976, 978, 980, 985, 998 rising, 524, 525, 622, 811, 968, 971-972, 976, 979, 980, 985, 999 symmetrical, 338, 524 Weekly charts, 440, 448-450, 537-539, 552, 755, 768-769, 781, 783 Weekly seale, 183, 59 98, 6111012 Index Wide patterns, see also Statistic section in each chapter best performance guidelines, 44, 114, 131, 179, 212, 227, 290, 349, 361, 389, 404, 420, 479, 578, 594, 607, 653, 669, 683, 794, 810, 826 defined, 984, 992 Wide-ranging days, 999 Width of pattern, see Statistics section in cach chapter Yearly position, see al Statistics section in each chapter best performance guidelines, 44, 62, 80, 131, 148, 163, 195, 243, 290, 349, 361, 389, 420, 494, 549, 562, 578, 594, 623, 638, 653, 669, 697, 710, 729, 764, 907, defined, 992 performance, defined, 992