Uncommon Chart Patterns by Thomas Bulkowski
Some bullish chart patterns are rare,
and some are simply not well known.
Read this to find out about both.
A few months ago, I received
someone asking about
for chart patterns.
I suggested the e-mailer could buy one of my books,
but short of a brain transplant, I could
do little else. This article addresses
the identification problem by highlighting
guidelines for some lesserknown
bullish chart patterns.
In Figure 1 you see a right-angled,
descending, broadening formation.
Its name comes from the broadening
appearance of price action marked
by descending lows. Note the horizontal
trendline along the pattern top,
forming an upper price boundary. The
minor lows follow a downsloping
trendline. Think of the formation as a
megaphone tilted so that the top is
horizontal but price action widens over
time. The volume pattern is usually
irregular, but in this case, it recedes.