Making Cents Of Throwbacks And Pullbacks by Thomas Bulkowski
What are they and how can we use them? Find out what they are and how they perform.
When I started investing more than 20 years ago, I thought technical analysis was nothing more than mysterious squiggles on a chart. Now, I am a chart pattern trader who’s not afraid to dig for answers. While completing work on my latest book, Trading Classic Chart Patterns, I uncovered some intriguing performance tips for stock investors and chart pattern traders. This article discusses those tips for
throwbacks and pullbacks.
BACKGROUND AND IDENTIFICATION TIPS
What are throwbacks and pullbacks? Figure 1 shows an example of a throwback after an upward breakout
from an ascending triangle. A throwback occurs when prices quickly return to the breakout price. After the
throwback completes its journey, prices usually continue climbing.