Encyclopedia of Chart Patterns. Thomas N. Bulkowski

Price does not push above this double top for over 3 years. A me...Figure 31.4 This Adam & Eve double top shows the difference between each pea...Figure 31.5 Price after the breakout from this Adam & Eve pattern fails to d...Figure 31.6 To use the measure rule, compute the height of the double top an...

      33 Chapter 32Figure 32.1 This is a good example of an Eve & Adam double top, except for t...Figure 32.2 Two twin peaks confirm as Eve & Adam double tops when price clos...Figure 32.3 Support at point B and the many peaks in October through Novembe...Figure 32.4 An actual trade made 52% using a potential double top as a sell ...Figure 32.5 This Eve & Adam pattern had a quick rise followed by a quick dec...

      34 Chapter 33Figure 33.1 The twin‐peak Eve tops become a valid Eve & Eve double top when ...Figure 33.2 Two peaks, similar in appearance, stand atop the price trend and...Figure 33.3 An Eve & Eve double top reverses the upward price trend. The pat...Figure 33.4 A common double top failure. Price declines after the second pea...Figure 33.5 Consider buying the stock once the decline completes. Sometimes,...

      35 Chapter 34Figure 34.1 A flag bounded by two parallel trendlines usually has a receding...Figure 34.2 Two flags in different price trends help gauge the move from A t...Figure 34.3 This flag appears about midway in a downtrend.Figure 34.4 The failure of price to continue rising is probably due to two f...Figure 34.5 The AB run is longer than CD, meaning that the measure rule fail...Figure 34.6 Use the measure rule to gauge the decline in this stock. Take th...

      36 Chapter 35Figure 35.1 A high, tight flag that sees price rise from about 30 to 120 in ...Figure 35.2 This high, tight flag looks loose, but price performs well, risi...Figure 35.3 A failure of a high, tight flag. Price fails to continue moving ...Figure 35.4 A high, tight flag with price stair‐stepping higher. How do you ...

      37 Chapter 36Figure 36.1 Plenty of gaps appear in a daily price chart. The most numerous ...Figure 36.2 Various gap types with area gaps illustrating the hook feature. ...Figure 36.3 Gina bought the stock on the breakaway gap and sold it a few day...Figure 36.4 Bulkowski sold this stock after two gaps appeared.

      38 Chapter 37Figure 37.1 This bearish Gartley sees price break out downward, and the drop...Figure 37.2 The bearish Gartley is at XABCD. Notice the minor dip after D an...Figure 37.3 The move from D to E is just 4%, making it difficult to short th...Figure 37.4 George traded this bearish Gartley like a normal chart pattern....

      39 Chapter 38Figure 38.1 This bullish Gartley appears as turns XABCD.Figure 38.2 This bullish Gartley struggles to find a trend direction.Figure 38.3 Price fails to rise much after D, and the Gartley breaks out dow...Figure 38.4 Jacob bought after this Gartley completed but sold quickly.

      40 Chapter 39Figure 39.1 A head‐and‐shoulders bottom. Two shoulder troughs surround a low...Figure 39.2 Head‐and‐shoulders bottom pattern on a weekly time scale. It tak...Figure 39.3 A rare head‐and‐shoulders consolidation of the primary uptrend....Figure 39.4 Failure of a head‐and‐shoulders bottom to stage an upward breako...Figure 39.5 A 5% failure in a head‐and‐shoulders bottom. Price must rise by ...Figure 39.6 A head‐and‐shoulders bottom. Compute the measure rule by subtrac...

      41 Chapter 40Figure 40.1 A dual‐shoulder complex head‐and‐shoulders bottom. Notice the ho...Figure 40.2 A dual‐head reversal. Volume on the left side of the pattern is ...Figure 40.3 A complex head‐and‐shoulders consolidation. The trend resumes mo...Figure 40.4 A failure of the complex head‐and‐shoulders pattern to climb mor...Figure 40.5 This trade in a triple busted complex head‐and‐shoulders bottom ...Figure 40.6 Complex head‐and‐shoulders bottom on a weekly scale. For a price...

      42 Chapter 41Figure 41.1 A head‐and‐shoulders top pattern where the center peak towers ab...Figure 41.2 Volume pattern of this head‐and‐shoulders top obeys the general ...Figure 41.3 A complex head‐and‐shoulders top pattern. The chart shows the wi...Figure 41.4 A rare head‐and‐shoulders consolidation. The pattern fails to co...Figure 41.5 The measure rule as it applies to a head‐and‐shoulders top. Calc...Figure 41.6 Bulkowski avoided watching profit disappear when this head‐and‐s...Figure 41.7 Head‐and‐shoulders top with steep neckline. There is no target p...

      43 Chapter 42Figure 42.1 Complex head‐and‐shoulders top with dual heads. The stair‐step p...Figure 42.2 Typical complex head‐and‐shoulders reversal. Multiple shoulders ...Figure 42.3 A more rounded‐appearing complex head‐and‐shoulders top. Left sh...Figure 42.4 A complex head‐and‐shoulders failure to reverse. Price fails to ...Figure 42.5 Another failure of a complex head‐and‐shoulders top. This one fa...Figure 42.6 A complex head‐and‐shoulders top. For the measure rule, compute ...

      44 Chapter 43Figure 43.1 A good example of a horn bottom. Two downward price spikes, sepa...Figure 43.2 Two examples of horns, one in a downward trend and one in an upt...Figure 43.3 A horn bottom failure. Among other clues, similar‐height price s...Figure 43.4 This horn bottom trade made 33% in a bear market.Figure 43.5 Horn bottom on weekly chart. As described in the Sample Trade, M...

      45 Chapter 44Figure 44.1 Horn top showing twin peaks. The stock drops almost in half afte...Figure 44.2 Horn tops with unusually tall price spikes. This horn exceeds th...Figure 44.3 Horn top appearing after an extended downtrend. It is probably b...Figure 44.4 Two horn tops and Covid‐19 convinced Doug to sell his holding du...

      46 Chapter 45Figure 45.1 A one‐day reversal, island bottom, and island top. You can see t...Figure 45.2 Several island reversals, some with short durations and some wit...Figure 45.3 Long island top that fails because price drops by less than 5%. ...Figure 45.4 An island bottom failure. Wait for price to close above the tren...Figure 45.5 A failed island bottom. Sometimes the best trade you can make is...

      47 Chapter 46Figure 46.1 A typical measured move down. The slope of the trendline is simi...Figure 46.2 Notice how measured move ABCD has legs that fit inside channels....Figure 46.3 This potential measured move down fails to see price drop in the...Figure 46.4 This measured move up led to a profitable trade.Figure 46.5 Measured move down followed by corrective phase. Eddy made $5 pe...

      48 Chapter 47Figure 47.1 A measured move up. The second leg gain nearly matches the gain ...Figure 47.2 A falling wedge marks the corrective phase in this measured move...Figure 47.3 A measured move up that fails after turning into a double top.Figure 47.4 Measured move up with a symmetrical triangle. As described in th...

      49 Chapter 48Figure 48.1 A pennant bounded by two converging trendlines looks like a shor...Figure 48.2 A short pennant forms after a quick price rise. The pennant slop...Figure 48.3 The downward price trend overshoots the small pennant on entry. ...Figure 48.4 This pennant looks like a small symmetrical triangle. Price brea...Figure 48.5 Here's a quick way to lose money trading a pennant.Figure 48.6 Use the measure rule to predict a price target. Take the differe...

      50 Chapter 49Figure 49.1 A pipe bottom on the weekly chart. Pipes commonly form after a r...Figure 49.2 A pipe bottom on the weekly chart. Point A is another pipe botto...Figure 49.3 Pipe bottom failures (weekly chart). Clues to these two pipe fai...Figure 49.4 Pipe bottom with preceding brief price dip and following low ret...

      51 Chapter 50Figure 50.1 The pipe on the left is not a pipe at all because price does not...Figure 50.2 This pipe top (weekly scale) appears during a retrace in a long‐...Figure 50.3 This pipe top forms near the end of a long symmetrical triangle ...Figure 50.4 This pipe top appeared at the end of a rise–retrace pattern that...

      52 Chapter 51Figure 51.1 A rectangle bottom shows an intermediate‐term downtrend leading ...Figure 51.2 A rectangle bottom appears in a downtrend. Price falls out the b...Figure 51.3 This is a rectangle bottom failure in a downward price trend. Pr...Figure 51.4 A trade in this rectangle resulted in a profit.Figure 51.5 Rectangle bottom followed by upward breakout. The measure rule a...

      53 Chapter 52Figure 52.1 Rectangle top with an upward breakout performs well in this uptr...Figure 52.2 A rectangle top with a receding volume trend. Although most rect...Figure 52.3 A 5% failure of a rectangle top. Price follows the existing tren...Figure 52.4 Rectangle top with breakaway and exhaustion gaps. Dave bought th...

      54 Chapter 53Figure 53.1 This roof pattern appears in a downward price trend.Figure 53.2 This roof may look like a head‐and‐shoulders top, but the breako...Figure 53.3 Price breaks