This bullish butterfly is at XABCD and has a downward breakout, ...Figure 17.3 This bullish butterfly fails to see price turn higher after D.Figure 17.4 Mary traded this bullish butterfly for a quick 12% profit.19 Chapter 18Figure 18.1 A cloudbank lasts for years until the 2007–2009 bear market take...Figure 18.2 Two cloudbanks appear on this chart (A and D), with the first on...Figure 18.3 Price fails to recover after the bear market plunge.Figure 18.4 A 4‐month simple moving average provides a buy signal.Figure 18.5 An ugly double bottom provides a buy signal.
20 Chapter 19Figure 19.1 This bearish crab sees price tumble after D.Figure 19.2 This well‐behaved crab has a downward breakout.Figure 19.3 This bearish crab fails to see price drop far after turn D.Figure 19.4 Sandy ignored the bearish crab and used a pennant to trade this ...
21 Chapter 20Figure 20.1 This bullish crab forms an extended V‐bottom at turn D.Figure 20.2 This bullish crab shows a sustained uptrend after an upward brea...Figure 20.3 This bullish crab breaks out downward after climbing just 2% abo...Figure 20.4 Sam spotted this bullish crab but shorted the stock.
22 Chapter 21Figure 21.1 A bump‐and‐run reversal leads to a cup‐with‐handle formation. No...Figure 21.2 A cup‐with‐handle pattern flanked by other cup‐with‐handle patte...Figure 21.3 A cup‐with‐handle pattern on a weekly scale. The failure at 10% ...Figure 21.4 Shown is a 5% failure of a cup‐with‐handle pattern. Although pri...Figure 21.5 Here is an example of the measure rule in practice on the weekly...
23 Chapter 22Figure 22.1 An inverted cup‐with‐handle pattern appears along with dome‐shap...Figure 22.2 This inverted cup has a V‐shape and a handle that mirrors the cu...Figure 22.3 This inverted cup‐with‐handle has uneven rims and U‐shaped volum...Figure 22.4 This is not an inverted cup‐with‐handle because price fails to c...Figure 22.5 A large flat base before the start of the cup supported price an...Figure 22.6 As described in the Sample Trade, Samantha traded this inverted ...
24 Chapter 23Figure 23.1 A diamond bottom reversal. Volume typically recedes through the ...Figure 23.2 A diamond bottom with receding volume trend. Price quickly recov...Figure 23.3 Support areas for diamond bottoms are near the base of the patte...Figure 23.4 A diamond bottom acts as a continuation of the downward price tr...Figure 23.5 Overhead resistance blocks the upward breakout from this diamond...Figure 23.6 Shown are four combinations of single‐ and two‐diagonal configur...Figure 23.7 A diamond top (left) and a diamond bottom (right), both single‐d...
25 Chapter 24Figure 24.1 A good example of a diamond top. Notice that price quickly retur...Figure 24.2 This diamond top appeared when price was moving sideways.Figure 24.3 Support and resistance for the diamond appears at the top of the...Figure 24.4 This diamond top sees price continue higher.Figure 24.5 A valid diamond top breaks out downward, but price fails to desc...Figure 24.6 The predicted breakout direction for diagonal diamond patterns....Figure 24.7 Shown is a diamond top with dome‐shaped volume. To get a price t...
26 Chapter 25Figure 25.1 This diving board pattern leads to a large upward move. Note: we...Figure 25.2 Note: weekly scale. The bottom of this board (A) is flat followe...Figure 25.3 Note: weekly scale. A number of potential diving board patterns ...Figure 25.4 Note: weekly scale. A diving board trade resulted in a small pro...Figure 25.5 Note: weekly scale. Rich made a trade using a diving board patte...
27 Chapter 26Figure 26.1 An Adam & Adam double bottom with twin spikes, volume heavier on...Figure 26.2 An Adam & Adam double bottom with a throwback. Pattern AB (upper...Figure 26.3 Shown are two Adam & Adam double bottoms. The horizontal lines a...Figure 26.4 An Adam & Adam double bottom confirmed when price closed above t...Figure 26.5 Example of second type of failure—failing to wait for breakout c...Figure 26.6 Randy traded this Adam & Adam double bottom, buying at the confi...
28 Chapter 27Figure 27.1 A tall one‐day downward price spike is the Adam bottom, and the ...Figure 27.2 This Adam & Eve double bottom appears as the corrective phase of...Figure 27.3 This double bottom happens after a downward price trend. The pat...Figure 27.4 Price confirms the breakout once it closes above the confirmatio...Figure 27.5 Example of a 5% failure. This type of failure occurs when price ...Figure 27.6 Double bottom trading dilemma. How do you trade this double bott...
29 Chapter 28Figure 28.1 A double bottom occurs after a downward price trend. High volume...Figure 28.2 The Eve bottom appears rounded and wider than the narrow and V‐s...Figure 28.3 The top of the Eve bottom is wider than the Adam bottom. Eve app...Figure 28.4 An Eve & Adam double bottom with volume higher on the right bott...Figure 28.5 This is a 5% failure, where price fails to climb much above the ...Figure 28.6 As described in the Sample Trade, Willie bought early into this ...
30 Chapter 29Figure 29.1 A broadening bottom leads to an Eve & Eve double bottom. The two...Figure 29.2 Points A and B do not depict a double bottom because there are l...Figure 29.3 These two Eve bottoms are wider and more rounded than the Adam b...Figure 29.4 Two minor lows compose the left Eve bottom, and the right bottom...Figure 29.5 Is this an Eve & Eve bottom or an Eve & Adam bottom, and why did...Figure 29.6 Price climbed just 9% after the breakout due to deteriorating fu...
31 Chapter 30Figure 30.1 An Adam & Adam double top has twin peaks that look similar with ...Figure 30.2 An Adam & Adam double top confirms when price closes below the c...Figure 30.3 Another example of an Adam & Adam double top, but price does not...Figure 30.4 An Adam & Adam double top within a complex head‐and‐shoulders to...Figure 30.5 A double top pattern that suffers a 5% failure. Price fails to c...Figure 30.6 The predicted drop from a double top didn't turn into a buy sign...Figure 30.7 The two sell trendlines provide an opportunity to sell the stock...
32 Chapter 31Figure 31.1 A double top has twin peaks that are usually a few months apart ...Figure 31.2 An Adam & Eve pattern forms in December and sends price back to ...Figure 31.3 Price does not push above this double top for over 3 years. A me...Figure 31.4 This Adam & Eve double top shows the difference between each pea...Figure 31.5 Price after the breakout from this Adam & Eve pattern fails to d...Figure 31.6 To use the measure rule, compute the height of the double top an...
33 Chapter 32Figure 32.1 This is a good example of an Eve & Adam double top, except for t...Figure 32.2 Two twin peaks confirm as Eve & Adam double tops when price clos...Figure 32.3 Support at point B and the many peaks in October through Novembe...Figure 32.4 An actual trade made 52% using a potential double top as a sell ...Figure 32.5 This Eve & Adam pattern had a quick rise followed by a quick dec...
34 Chapter 33Figure 33.1 The twin‐peak Eve tops become a valid Eve & Eve double top when ...Figure 33.2 Two peaks, similar in appearance, stand atop the price trend and...Figure 33.3 An Eve & Eve double top reverses the upward price trend. The pat...Figure 33.4 A common double top failure. Price declines after the second pea...Figure 33.5 Consider buying the stock once the decline completes. Sometimes,...
35 Chapter 34Figure 34.1 A flag bounded by two parallel trendlines usually has a receding...Figure 34.2 Two flags in different price trends help gauge the move from A t...Figure 34.3 This flag appears about midway in a downtrend.Figure 34.4 The failure of price to continue rising is probably due to two f...Figure 34.5 The AB run is longer than CD, meaning that the measure rule fail...Figure 34.6 Use the measure rule to gauge the decline in this stock. Take th...
36 Chapter 35Figure 35.1 A high, tight flag that sees price rise from about 30 to 120 in ...Figure 35.2 This high, tight flag looks loose, but price performs well, risi...Figure 35.3 A failure of a high, tight flag. Price fails to continue moving ...Figure 35.4 A high, tight flag with price stair‐stepping higher. How do you ...
37 Chapter 36Figure 36.1 Plenty of gaps appear in a daily price chart. The most numerous ...Figure 36.2 Various gap types with area gaps illustrating the hook feature. ...Figure 36.3 Gina bought the stock on the breakaway gap and sold it a few day...Figure 36.4 Bulkowski sold this stock after
