A Fresh Look At Short-Term Patterns by Perry J. Kaufman
You may be familiar with some of the most popular short-term patterns, but do you know which work best? These test results may help you find out.
I have always liked short-term price patterns. The simplest, such as an island reversal, seem intuitively correct. The best study of chart patterns Ive seen is by Thomas Bulkowski, who ranked the three top bullish patterns as follows:
1. Upward breakout of a rectangular top (this is the same as a breakout above a horizontal resistance line)
2. Upward breakout from a falling wedge
3. Upward breakout from an ascending triangle ...