The market's bestselling and most comprehensive reference on chart patterns, backed by statistics and decades of experience
When the smart money trades the securities markets, they leave behind financial footprints. Combine enough footprints together and you have a trail to follow. That trail becomes what’s called a chart pattern. Encyclopedia of Chart Patterns, Third Edition expands upon Bulkowski's immensely popular Second Edition with fully revised and updated material on chart patterns. Whether you’re new to the stock market or an experienced professional trader, use this book as a reference guide to give you an edge.
Within the pages of this book, you’ll learn how to identify chart patterns, supported by easy-to-understand performance statistics describing how well a pattern works, what the failure rate is, and what special quirks suggest better future performance. You’ll discover how often a stop loss order will trigger at various locations within a chart pattern, how the chart pattern’s performance has evolved over the past three decades, and how to profit from failure by trading busted patterns.
This broadened and revised Third Edition offers investors the most comprehensive, up-to-date guide to this popular method of market analysis. Written by a leading expert on chart patterns, Tom Bulkowski, this edition includes revised statistics on 75 chart patterns including 23 new ones, with pictures and performance statistics, packaged within easy-to-read text.
- Gain essential knowledge of chart patterns and how they are used to predict price movements in bull and bear markets
- New tables include how often stops are hit, busted pattern performance, performance over the decades, and special pattern features
- Joining Tour, Identification Guidelines, Focus on Failures, Statistics, Trading Tactics and Sample Trade is Experience. It puts you in the passenger’s seat so you can share lessons learned from Bulkowski's trades
- This edition reports on statistics from nearly four times the number of samples used in the Second Edition and ten times the number in the First Edition
The Encyclopedia of Chart Patterns, Third Edition further solidifies the reputation of this book as the leading reference on chart patterns, setting it far above the competition.
Table of Contents
Introduction 1
1 How to Trade Chart Patterns 9
2 AB=CD®, Bearish* 27
3 AB=CD®, Bullish* 36
4 Bat®, Bearish* 44
5 Bat®, Bullish* 52
6 Big M* 60
7 Big W* 77
8 Broadening Bottoms 95
9 Broadening Formation, Right-Angled and Ascending 114
10 Broadening Formation, Right-Angled and Descending 132
11 Broadening Tops 153
12 Broadening Wedge, Ascending 175
13 Broadening Wedge, Descending 192
14 Bump-and-Run Reversal, Bottom 208
15 Bump-and-Run Reversal, Top 227
16 Butterfly®, Bearish* 245
17 Butterfly®, Bullish* 255
18 Cloudbanks* 263
19 Crab®, Bearish* 277
20 Crab®, Bullish* 286
21 Cup with Handle 294
22 Cup with Handle, Inverted 311
23 Diamond Bottoms 326
24 Diamond Tops 344
25 Diving Board* 362
26 Double Bottoms, Adam & Adam 379
27 Double Bottoms, Adam & Eve 398
28 Double Bottoms, Eve & Adam 419
29 Double Bottoms, Eve & Eve 438
30 Double Tops, Adam & Adam 458
31 Double Tops, Adam & Eve 476
32 Double Tops, Eve & Adam 494
33 Double Tops, Eve & Eve 510
34 Flags 526
35 Flags, High and Tight 542
36 Gaps 555
37 Gartley, Bearish* 568
38 Gartley, Bullish* 577
39 Head-and-Shoulders Bottoms 585
40 Head-and-Shoulders Bottoms, Complex 601
41 Head-and-Shoulders Tops 618
42 Head-and-Shoulders Tops, Complex 636
43 Horn Bottoms 653
44 Horn Tops 668
45 Island Reversals 682
46 Measured Move Down 699
47 Measured Move Up 713
48 Pennants 726
49 Pipe Bottoms 743
50 Pipe Tops 760
51 Rectangle Bottoms 773
52 Rectangle Tops 792
53 Roof* 811
54 Roof, Inverted* 825
55 Rounding Bottoms 839
56 Rounding Tops 855
57 Scallops, Ascending 871
58 Scallops, Ascending and Inverted 888
59 Scallops, Descending 903
60 Scallops, Descending and Inverted 921
61 Three Falling Peaks 936
62 Three Peaks and Domed House* 952
63 Three Rising Valleys 960
64 Triangles, Ascending 976
65 Triangles, Descending 997
66 Triangles, Symmetrical 1019
67 Triple Bottoms 1040
68 Triple Tops 1057
69 V-Bottoms* 1075
70 V-Bottoms, Extended* 1089
71 V-Tops* 1104
72 V-Tops, Extended* 1118
73 Wedges, Falling 1131
74 Wedges, Rising 1148
75 Wolfe Wave®, Bearish* 1164
76 Wolfe Wave®, Bullish* 1174
Statistics Summary 1184
Glossary 1197
Visual Index of Chart Patterns 1212
