V. 22:1(26-28,30-31): Identifying Bearish Chart Patterns (II) by Thomas N. Bulkowski

V. 22:1(26-28,30-31): Identifying Bearish Chart Patterns (II) by Thomas N. Bulkowski
Item# \V22\C01\005BULK.PDF
$3.95
Availability: In Stock

Product Description

Identifying Bearish Chart Patterns (II) by Thomas N. Bulkowski

Hereís the second and final installment about bearish chart patterns.

S omeone I know once made the bold statement that there is a chart pattern for any trend that ends. I donít know if thatís true, but here are 10 bearish patterns you should know about.

ISLAND REVERSAL

Island tops are some of the easiest patterns to recognize. Figure 1 shows an example. Prices gap upward, meander around, then gap down. The gaps align, meaning that they share at least one common price. Thus, price seems to hover like a blimp above the surrounding countryside. Usually, prices move up and away from the two gaps, leaving clear sky below, as shown by the horizontal line in the figure. At other times, prices will dip down and close the first gap, but that should not detract from the pattern ó it just makes islands harder to spot.

Look for a two-gap pattern after a rising price trend. The gaps must have some prices in common to set off the island.

How far will prices decline? Find the predicted decline by first subtracting the lowest low from the highest high in the pattern. That gives the patternís height. Next, subtract the height from the lowest low to get the price target. In the 245 patterns I looked at, the decline averaged 21%, about par for all bearish chart pattern types, and they met or exceeded the price target 78% of the time.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order