color blind so you automatically throw out whateverhe says. One says it is solid blue. Another says it is not blue at all but green,while the third says it looks like a combination: blue-green. To each individual, blue looks like blue—just do not try to compare answers.Developing a trading style is a lot like that. It is an individual endeavorthat has a lot in common with experience. I cannot give you experience; I canonly suggest ways to acquire your own.If you read a chapter on a chart pattern and buy the first stock showingthe pattern, you will probably be successful. The first trade nearly always worksfor the novice, maybe even the second or third one, too. Eventually, though,someone is going to pull the rug out from under you (who knows, maybe itoccurs on the first trade). You will make an investment in a chart pattern andthe trade will go bad. Maybe you will stumble across a herd of bad trades andget flattened. You might question your sanity, you might question God, butone thing is for certain: It is not working!
Just because I rely on technical analysis does not mean I do not look at theprice-to-earnings, price-to-sales, and other more esoteric ratios. Then thereis the emotional element. After going for months without making a singletrade, suddenly a profitable opportunity appears and I will take advantageof it. Three days later, I will want to trade again. Why? Am I tradingjust because it feels good to be finally back in the thick of things? Am I trading just because the single woman living nearby does not know I existand I am acting out my frustrations or trying to impress her with the size
of my wallet? That is where paper trading comes in handy. I can experiment onnew techniques without getting burned. If I do the simulation accuratelyenough, my subconscious will not know the difference and I will learn a lot
in the process.Once I come to terms with any emotional issues, I look at money management. How much can I realistically expect to make and how much can Ilose? What is the proper lot size to take? When should I add to my position?
How long will it take for the stock to reach my target and should I invest in aless promising but quicker candidate?
10
Introduction
Investing using chart formations is an exercise in probability. If you playthe numbers long enough, you will win out. Sure, some of your investmentswill fail, and you must learn to cut your losses before they get out of hand. Butthe winners should serve you well, providing you let them ride. Just do notmake the mistake of watching a stock double or triple only to reverse courseand drop back to where it started. Or worse.
Day Traders, Position Traders, Buy-and-Hold InvestorsAs I was writing this book, I kept asking myself what is the time horizon for chartpatterns? Are they best for day traders, position traders, or buy-and-holdinvestors? The answer I kept coming up with is: Yes! Chart formations can beprofitable for day traders—those people who are in and out of a trade during asingle day. Many day traders have trading styles that depend on chart formations, support, and resistance. They concentrate on reliable formations thatquickly fulfill their measure rule predictions.For position traders, those who hold the trade longer than a day but notforever, chart patterns offer convenient entry and exit points. I put myself inthis category. If the trade goes bad, I am out quickly. If it is profitable, I see noneed to cut my profits short. When the gains plateau, or if the stock has movedabout all it is going to, I consider moving on. Like the day trader, I try to maximize turns by buying formations that promise reliable returns and reach theultimate high quickly.For the long-term investor, chart patterns also signal good entry and exitpoints. I recently purchased an oil services company knowing that the investment would not make a significant return for 2 or 3 years (I was wrong: It doubled in 3 weeks). It is my belief that in 3 years' time, the stock will be in the 3 Os,a sixfold increase from its low. It probably will not qualify for a ten-bagger, butit is not small change either. In the short term, the road is going to be rockyand I have added to my position as the stock has come down. Since I am in itfor the long term, I have an outstanding order to buy more shares. If this stockgoes nowhere, then my analysis of the market trends was wrong, and I will havelearned a valuable lesson.
The Sample TradeThe Sample Trade sections that are included in many of the chapters in thisbook are fictitious except for one: the trade I made using a symmetrical triangle bottom. Each sample trade uses techniques I wanted to illustrate, incorporating fictitious people in sometimes unusual circumstances. Call it poeticlicense, but I hope they give you some ideas on how to increase your profits orto minimize your losses.
If You Like This Book ...
11
If You Like This Book . . .When I plunk down my hard-earned money for a book, I expect to get a goodvalue. Many times I have complained that I did not learn anything from abook. At other times, the information is exciting and new, but I cannot use itbecause the tools the author presented are either too esoteric or too expensive.I vowed to give the reader real value in this book. The information is easyto find, from the alphabetical chapter layout, to the statistical snapshot at thestart of each chapter, to the advice and suggestions all laid out in easy referencetables. The chapters are replete with pertinent illustrations. However, I fearthat if you try to read this book from cover to cover, it surely will put even themost hardened insomniac to sleep. Use this book as a reference tool. Refer toit before you make a trade.If this book saves you money, gives you the courage to pull the triggerwith a little bit more confidence, or makes you a whopping profit, then I willhave done my job.
Results Snapshot
1Broadening Bottoms
Downside BreakoutsAppearance
Price trend is downward, leading to the formation.Megaphone appearance with higher highs andlowered lows that widen over time. Breakout isdownward.
Reversal orconsolidation
Short-term (less than 3 months) bearish consolidation
Failure rate
6%
Average decline
27%, with most likely decline between 15% and 20%
Volume trend
Ragged, but usually follows price: rises as prices rise,falls when prices fall.
Percentage meetingpredicted pricetargetSee also
RESULTS SNAPSHOT
13
70%
Broadening Formations, Right-Angled andAscending; Broadening Formations, Right-Angledand Descending; Broadening Tops; BroadeningWedges, Ascending; Broadening Wedges,Descending
Upside BreakoutsAppearance
Price trend is downward, leading to the formation.Megaphone appearance with higher highs and lowerlows that widen over time. Breakout is upward.
Reversal orconsolidation
Short-term (less than 3 months) bullish reversal
Failure rate
2%
Average rise
25%, with most likely gain less than 10%
Volume trend
Ragged, but usually follows price: rises as prices rise,falls when prices fall.
downward, the decline is above average in severity.
The most likely gains—computed using a frequency distribution of the
Percentage meeting
returns—are about what you would expect: 10% for upside breakouts and a rel-
predicted price
target
When I compiled the statistics for broadening bottoms, I had to double checkthe results because they were unusual. Broadening bottoms with downsidebreakouts outperform those with upside breakouts. Bullish formations typicallyhave gains averaging about 40%; broadening bottoms have gains of just 25%.Bearish formations decline about 20%, on average, but bearish broadeningbottoms show losses of 27%. This information tells me that even though youcan have an upside breakout, the chart pattern is essentially a bearish one.Prices do not rise all that far before retreating, and when they do break out
59%
Surprising finding
Partial rise at the end of the formation predicts adownside breakout 67% of the time and partialdeclines predict an upside breakout 80% of the time.
See also
Broadening Formations, Right-Angled andAscending; Broadening Formations, Right-Angledand Descending; Broadening Tops; BroadeningWedges, Ascending; Broadening Wedges,Descending
atively high 15% to 20% for broadening bottoms with downside breakouts.The failure rates are also remarkably small: just 2% and 6% for upsideand downside breakouts, respectively. Anything that is under 20% I consideracceptable.One surprising finding concerns partial rises and declines, where pricesbegin moving across the formation to the opposite side, reverse course, andstage a breakout. When prices begin moving down from the top and reverse,80% of the formations stage an upside breakout. For downside breakouts, thescore is a respectable 67% (two out of three show this behavior).
14
Broadening Bottoms
Identification Guidelines
TourYou may be wondering what differentiates a broadening bottom from a broadening top. A broadening bottom has a price trend leading down to the start ofthe formation; a broadening top has prices trending up. This differentiation isan arbitrary designation I made to separate the two formation types. I couldhave used their location in the 12-month price range (those located in theupper half are tops, the rest are bottoms). However, this methodology poses aproblem when the formation is near the center of the yearly price range: Is it atop or a bottom?Using a price trend leading to a formation is no sure-fire solution either.If the price trend is nearly horizontal or changes abruptly just before the formation starts, then I pretend I am a moving average. Would a 90-day movingaverage be trending up or down? Once you know the trend, you can then figure out whether you are dealing with a broadening top or bottom.Some maintain that a broadening bottom does not exist. They simply
lump every broadening pattern into the broadening top category. I decided toseparate the two on the off chance that their performance or behavior differs.You may want to combine the statistics or do your own research.Figure 1.1 is an example of a broadening bottom. This particular one iscalled a five-point reversal because there are five alternating touches, twominor lows and three minor highs. A five-point reversal is also rare: I located
Bane One Corp. (Bank, NYSE, ONE)
only 5 in the 77 broadening bottoms I examined. The price trend begins moving down in late August and reaches a low 2 days before the formation begins.Yes, prices do move up for several days, leading to the first touch of the toptrendline, but I still consider the overall price trend to be moving down to theformation.This particular chart pattern shows the partial decline I mentioned earlier. Prices move down from 26 to 24/2, then reverse course and shoot out thetop. The stock reached a high of 38'/2 just over a year later.
Identification GuidelinesTable 1.1 lists the identification guidelines for broadening bottoms. As mentioned earlier, a declining price trend precedes a broadening bottom. Even ifprices rise just before the formation begins, ignore it. It is still a bottom. Thisarbitrary designation also makes intuitive sense: A bottom should appear at theend of a downtrend, not when prices are climbing to the moon.The shape of the formation is distinct. It reminds me of chaos theorywhere small disturbances oscillate back and forth, then sometimes growunbounded, wreaking havoc. In the stock market, prices reach new highs thencross over and make new lows. When you draw a trendline across the minorhighs and another connecting the minor lows, the formation looks like amegaphone.The two trendlines drawn across the minor highs and lows are important.The top trendline should slope up; the bottom one should slope down. Thediverging trendlines distinguish the broadening bottom from other types of
Table 1.1Identification Characteristics of Broadening Bottoms
Aug 94
Figure 1.1 A broadening bottom formation, specifically a five-point reversal, socalled because of the two minor lows (the even numbers) and three minor highs(the odd numbers).
15
Characteristic
Discussion
Price trend
The intermediate-term price trend should be downward leadingto the formation.,
Shape
Megaphone shape with higher highs and lower lows.
Trendlines
Prices follow two trendlines: The top one slopes up and thebottom one slopes down.
Touches
Should have at least two minor highs and two minor lows, butnot necessarily alternating touches.
Volume
Irregular but usually rises as prices rise and recedes as prices fall.
Breakout
The breakout can occur in either direction and, in some cases,prices move horizontally for several months before staging adefinitive breakout.
16
Broadening Bottoms
formations, such as the right-angled broadening formation (which has onehorizontal treiidline) or the broadening wedge (both trendlines slope in thesame direction). So it is important that both trendlines have a slope that isopposite each other (that is, the top slopes up and the bottom slopes down).A broadening bottom needs at least two minor highs and two minor lowsto be a valid formation. Anything fewer means you are incorrectly identifyingthe formation. What is a minor high or low? A minor high is when prices trendup, then drop back down, leaving a clearly defined peak. A minor low is just thesame thing flipped upside down: Prices move lower, then head back up leavinga clearly defined valley. Figure 1.1 shows five minor highs or lows, labeled bynumbers. The odd numbers tag the minor highs and the even numbers are theminor lows. Let me stress that the minor highs and lows need not be alternating, as in Figure 1.1. Just as long as you can count at least two peaks and twovalleys—wherever they may appear—that is fine.There is nothing magical in the volume trend. I performed linear regression from die start of each formation to the end point (not the breakout pointthat is usually a month beyond the end of the formation) and found that volume rises about 58% or 59% (upside and downside breakouts, respectively) ofthe time. That is just a little better than a coin toss, certainly not strong enoughto make a definitive statement.If you look closely at most broadening bottoms, you will find that volumeusually follows price. In Figure 1.1, the price decline between peak 1 andtrough 2 shows a receding volume trend. When prices head up from point 2 topoint 3, so does volume. One thing is certain: Volume is irregular and the rising-falling trend is only a general guideline often broken. When selecting abroadening bottom, I ignore the volume pattern.The breakout point is difficult to identify in a broadening formation as it
Focus on Failures
17
Standard Microsystems Corp. (Computers ft Peripherals, NASDAQ, SMSC)
Jul95
Figure 1.2 A breakout from the broadening bottom occurs when prices riseabove the highest high in the formation, shown as point A.
This formation is typical of broadening bottoms. The breakout is upwardand occurs at a price of 18. Soon, die stock moves up to 23^, a rise of 23% ornearly die 25% average rise for broadening bottoms with upside breakouts.
Focus on Failures
is developing. In retrospect, it is easier. I look for the place where prices pierce
the up or down trendline or make an extended move. If prices pierce the trendline, then the penetration point becomes the breakout point. If prices move upand follow along the top trendline without piercing it, then I backtrack to theprior minor high and draw a horizontal line forward in time until prices cross
it. When that happens, that is the breakout point.Let me give you an example. Consider the broadening bottom shown inFigure 1.2. The price trend over the preceding month leading to the formationis downward. The two trendlines outline a widening price pattern as you wouldexpect from a broadening formation. There are more than two minor highs andtwo minor lows pictured, meeting another criterion mentioned in Table 1.1.Where is the breakout? This formation is particularly easy. If you extendthe top trendline upward, you find that prices rise well above the line, signaling an upside breakout. Then it is just a matter of backtracking to the highestminor high and drawing a horizontal line to determine the actual breakoutprice. Point A marks the highest high in die formation.
The good news is that with only three formation failures there is litde to worryabout. The bad news is that with only three failures there is not much to learn.Figure 1.3 shows one of the three broadening bottom failures. Prices headdown and appear to suffer a dead-cat bounce lasting from April to August. I donot recommend taking a position in any stock that shows a dead-cat bounceregardless of how attractive the formation looks. Obey this recommendationfor 6 months to a year while the stock recovers and management gets its housein order (or solves the cause of whatever is ailing the stock).In the 3 weeks before the formation appeared, prices were heading higherin reaction to the dead-cat bounce. In June diey moved horizontally from theformation top for over a month before easing down. It was during this timethat prices rose above the high of the formation (see point A).I do not consider prices to break out above or below a formation until theclosing price moves beyond the formation high or low, which is the case withpoint A. It is not an upside breakout because the close is at 3 3 7/s, well below the
18
Broadening Bottoms
General StDescriptionNumber of formations: 35in 500 stocks from 1991 to1996; 42 in about 300 stocksfrom 1996; to 1999Reversal or consolidationFailure rateAverage rise/decline ofsuccessful formations
Most likely rise/declineOf those succeeding, numbermeeting or exceeding pricetarget (measure rule)Average formation lengthPartial rise but ended downPartial decline but ended up
Figure 1.3 This broadening bottom forms as part of the recovery process from adead-cat bounce. When prices close below the formation low, a downside breakout occurs. Point A shows where prices move above the high but do not closehigher. The formation is a failure because prices do not move down by more than5% below the breakout point before reversing.
formation high of 3 4*4. Two days later, it peaks above the high, but the closeis also below the formation high.However, look what happens when prices begin sinking in mid-July.They drop below the formation and close even lower. The price needs to dropbelow 30%. At its lowest point, it closes at 297/s. That is just fifty cents belowthe low, but it is enough to signal a downside breakout. Within a week of moving below the formation low, prices shoot to 3 3 and continue up using a slowertrajectory.
Figure 1.3 represents what I call a 5% failure. Prices break out lower butfail to continue moving in the breakout direction by more than 5% beforeheading back up. The reverse is also true for upside 5% failures: Prices moveup by less than 5% before turning around and tumbling.
StatisticsTable 1.2 shows general statistics, which I separated into two types: upside anddownside breakouts. Since there is a dearth of broadening bottoms in my usualdatabase of 500 stocks over 5 years, I searched the database that I use on a daily
Percentage of time therewas a trend reversal within3 months
basis. About 3 years long, it cowhere the other database endsthat I uncovered more format(900 years of daily price data)price data).Broadening bottoms witvailing trend, whereas those wThis observation makes senseleading to the formation mu
an upward breakout will be aconsolidation.
The failure rate is very lothink the reason for this occurremation represents a strong trendto the other. Once this momentand not falter after a breakoutgoes, a trend in motion tends toThe average rise and decldownside ones. Both statisticsusual 40% or so for well-behav
20
Broadening Bottoms
I
'
above the usual 20% norm for bearish formations. The numbers suggest diebroadening bottom is predominantly a bearish formation, resulting in shortupside gains or extended downside losses.The most likely rise or decline is about average: 10% for upside breakoutsand a stronger than normal 15% to 20% for downside breakouts. Figure 1.4shows the results from a frequency distribution of die gains and losses. I callthe tallest columns the most likely gain or loss because they have the highest frequency (the most formations in a given percentage range). It is the return aninvestor is likely to experience most often.The figure looks quite irregular with returns forming two humps: onefrom 10% to 25% and a second from 35% on upward. A small sample size isprobably the reason, with just 45 or 32 formations to divide between 10 categories, so view the results with skepticism.I explain the measure rule in the Trading Tactics section, but it involvescomputing the height of the formation and adding or subtracting it from the
(usually a bullish scenario), thmaintain, the stock will reachI tested this premise and fouformations have die ultimatethe breakout point. I think ainto another fiscal quarter, an
breakout price. The result gives the target price to which the stock will move.
any downturn.
For upside breakouts, prices reach the target just 59% of the time, whereasdownside breakouts score much better, at 70%. Still, the values are a bit shy ofthe 80% benchmark I consider a minimum for reliable formations.The average formation length is remarkably close for both types of breakouts: about 2 months. Since this is an average, the actual lengths can range allover the place. If you can state one thing about broadening formations, it isthat they take time to form. The oscillating movements from one side of theformation to the other do not happen overnight.
Table 1.3 shows breakou45 formations with upside breformation ends, the actual breI consider a breakout to occucloses outside the trendline) odinate amount of time. Once amations with upside breakoutchart patterns widi downsideWhere in the yearly priceI divided the yearly price rang
An interesting anomalyis die partial rise or decline.talking about. Prices begin toside, turn around, and break oout follows 67% of the timeeven better: 80% of the formaSo, if you see a partial rise orto jump in and trade the stock
Some have said that whe
appropriate range. Those form
in the center or lower third of ditself resides rather low in th
Breakout StaDescriptionNumber of breakoutsFormation end to breakoutFor successful formations,days to ultimate high/lowPercentage of breakoutsoccurring near 12-monthlow (L), center (C), or high (H)
Figure 1 .4
Frequency distribution of returns for broadening bottoms.
Percentage gain/loss for each12-month lookback period
22
Broadening Bottoms
because a requirement of a broadening bottom is that prices trend downwardto the start of the formation. Since the breakout point is at the top of the formation, it sometimes pokes the breakout point into the center third of theyearly price range. For downside breakouts, the breakout point is usually in thelowest third of the yearly price range.
Mapping the performance of die chart patterns over the same price rangeshows that those with upside breakouts split evenly: The lowest and highestthirds of the yearly price range score best with gains averaging 26%. For
To count the number of totouches. I do not consider thethe entry point is on the bottomto the top and reverse course. Tthe opposite side, making anothprices touch the bottom trendlihigh, but since prices did nottouch scores.
downside breakouts, those in the lowest third of the yearly price range have the
highest average decline: 30%. This percentage tapers off with those formations
Trading Tactics
in the highest third of the range showing the worst returns at 22%.
Table 1.4 shows the last group of statistics—all the formations brokendown by alternating touches. This is not the same as the requirement of hav-
ing two minor highs and two minor lows in each broadening bottom. Twominor highs, for example, can occur without prices declining fully to the opposite side. I counted the number of alternating touches for each formation to seeif there is a pattern to the number of touches and the breakout point. As youcan see in Table 1.4, formations with four alternating touches break out mostoften, 13 each. However, formations with upside breakouts commonly rangefrom three to five alternating touches per chart pattern.What does this mean? If you find a broadening bottom in a stock you own
Table 1.5 shows trading tacticsdetermine how much money yorule helps with the prediction.in the formation to give you the
highest high to get the target pric
from die lowest low for downsidFigure 1.5 makes die compin the chart pattern at 14H. Th
or are considering purchasing, you might try counting the number of alternating touches. If the stock has four touches, then it is more likely to break out onthe next crossing of the formation. The table suggests that the likelihood of an
upside break out after four alternating touches is 52%, and a downside breakout is 57% (the side of the first touch gives the breakout direction: If the firsttouch is on the top, then an upside breakout is likely after four touches).
Table 1.4Frequency Distribution of Successful Formations by Number of AlternatingTouches with Cumulative Percentage of TotalNumber ofAlternating Touches3
Number withUpside Breakouts10:
Number withDownside Breakouts
23%
4: 13%
4
13:
52%
1 3:
57%
5
10:
75%
8:
83%
6
6: 89%
Trading TactiTrading Tactic
Explanat
Measure rule
Computelowest lowthe mostthe target
Co long at the low
Once recmakes its
Long stop
Place a sagainst a
Go short at the highShort stop
Sell short
Move stops
Raise or loonce price(for short s
Other
If a broadeaccordingshort the s
2: 90%
7
3:
95%
3: 100%
8
1: 99%
0: 1 00%
9
1 : 1 00%
0: 1 00%
Place a sadverse btrendline acover as i
24
Broadening BottomsAcuson Corp (Medical Supplies, NYSE, ACN)
If luck is on your side and die
prior minor high—place the s
If the stock makes a partreliable breakout signal. Forand for partial declines, it womake sure you place a stop-loscase the trade goes bad.Once prices break out anif the price nears the target.exceed die target, so be readresistance level between the c
the resistance point and turn a
Sample TradeJan 93
Feb
Mar
Apr
May
|un
|ul
Figure 1.5 A broadening bottom with five alternating touches. Expect a downward breakout because a partial rise appears.
height is the difference between the two or 2 Vs. Add the value to the high toarrive at the upside price target. This turns out to be 16'4. I compute thedownside target by subtracting the height from the lowest low (that is, 12 - 2 l/sor 97/s). You can see in Figure 1.5 that the price never quite reaches the downside price target. For downside breakouts, prices fulfill the measure rule 70%of the time but only 59% of the time for upside breakouts. Both values are shy
of die 80% that I like to see for reliable formations.Once you have uncovered a broadening bottom, with two minor highs
and two minor lows, you can think about trading it. When the price bouncesoff the lower trendline, buy the stock. Sell when it turns down. The downturn
may occur as a partial rise partway across the formation or prices may crosscompletely to the other side, touch the top trendline, and head down. Remember, the formation may stage an upside breakout, so do not sell too soon andcut your profits short.In a rising price trend, place a stop-loss order l/s below the minor low.Should the stock reverse and head down, you will be taken out with a smallloss. As the stock rises to the opposite side of the formation, move your stopupward to l/s below the prior minor low. The minor low may act as a resistancepoint, so you will be giving the stock every opportunity to bounce off the resistance level before being cashed out.The trading tactic for downside breakouts is the same. When prices touchthe top trendline and begin moving down, short the stock. Place a stop-loss
order VB above the highest high in the formation, then pray that prices decline.
Susan likes to think of herself asuffering in foul weather as aslave to her computer masters.to short a stock, given good prtal or technical situation. It is aWhen she spotted die broher analysis. The stock reached
been heading down ever since
wondered how much downsidaries and counted die number
labeled as numbers and PointSince most broadening fo
ing touches and since the pridown, she guessed diat die stoing. So she sold the stock shortbut one she was comfortablestop at 1454, or H above the hiSusan was overjoyed to seto die other side of die formatUsually, her trades are not thatered the stop to the nearest mithe high. Then she waited.The stock bounced off dishe hoped. She decided to be pstop-loss order in place at thefortable in letting the trade ridThe stock bounced off dieit met resistance and headed ba
26
Broadening Bottoms
determination that on the next touch, the stock would pierce the lower trendline and continue down. She doubled her stake by selling more stock short at1234. She was wrong. The stock continued down 1 more day before moving upagain. Susan adjusted her stop-loss order to include the additional shares, butkept it at the same price level (13%). Again she waited. The stock slowlyclimbed and reached a minor high of 13'/8 before heading down again. Thistime the decline was swift enough to punch through the resistance zone at the
lower trendline.When the stock descended below point B, Susan lowered her stop-lossorder to V« above that point or I2l/s. Then she looked at the measure rule forthe price target. She calculated a target of 97/8 and wondered if the stock wouldreally reach that point. To be safe, she decided to cash out if the stock reached
2Broadening Formations,Right-Angled andAscending
lO'/s, or '/e above a common support price of 10 (a whole number typicallyshows support).
When the stock plunged to 10% on high volume, she wondered if she waslooking at a one-day reversal chart pattern. With those formations, it is diffi-
cult to be sure if prices would reverse or not. She decided to hold on to heroriginal target.Two days later, prices zoomed upward and her stop closed out the tradeat 12'/s. She did not make much money (about 9% with a hold time of just overa month), but she gained experience and a few pennies to put in the bank.RESULTS SNAPSHOTAppearance
Horizontal bottom with higher highs following anup-sloping trendline
Reversal or consolidationFailure rate
Short-term (up to 3 months) bearish reversal
Failure rate if waitedfor breakout
34%9%
Average decline
18 %, but most likely decline is about 10%
Volume trend
Irregular
Fullbacks
72%
Percentage meetingpredicted price target
43 %; using half of formation height gives 91 %success ratin?
Before I began studying this formation, I assumed prices would climb away