Encyclopedia of Chart Patterns by Thomas N. Bulkowski

Author:Thomas N. Bulkowski
Language: eng
Format: epub, pdf
Publisher: Wiley
Published: 2011-02-21T16:00:00+00:00

For Best Performance

The following list includes tips and observations to improve your selection of long islands for the best performance. Refer to the associated table for more information.• Review the identification guidelines for correct selection—Table 31.1.

• Trade with the trend: go long in a bull market (islands with an upward breakout) and short a bear market (islands with a downward breakout) —Table 31.2.

• Islands in a bear market with downward breakouts have the lowest failure rates for declines up to 30%. After that, islands in a bull market with upward breakouts have lower failures—Table 31.3.

• Most islands perform best when the breakout is near the yearly low—Table 31.4.

• Avoid throwbacks and pullbacks because performance suffers when they occur—Table 31.4.

• Most islands with large gaps and downward breakouts perform better—Table 31.4.

• Look for price weakness a month to 7 weeks after the upward breakout—Table 31.5.

• Select tall patterns—Table 31.6.

• Patterns narrower than the median usually outperform—Table 31.6.

• Very narrow islands may mark the end of the trend—Table 31.6.

• Islands in a bull market with falling volume outperform—Table 31.7.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.