THE BOWL PATTERN. Clean and simple once the stock breaks out.
Updated
THE BOWL PATTERN. Clean and simple, this sleeper pattern takes off once the stock breaks out.
For the 2005 winners, the breakouts occurred on 52-week highs of the stocks' prices. In his book Encyclopedia Of Chart Patterns, Thomas Bulkowski tested and rated the various patterns, and the rounded, or bowl, pattern was the second most likely to rise, with a 54% chance to rise 20% or more. Even if a stock isn't the next big winner, it's a big bonus if you have a better than average chance of making money on the trade.
Beyond the breakout pattern, logically the top 10 stocks should have strong fundamentals and it's important to know exactly what made them go up. So in retrospect, I followed the trail of news releases and earnings reports fueling their growth.
For the 2005 winners, the breakouts occurred on 52-week highs of the stocks' prices. In his book Encyclopedia Of Chart Patterns, Thomas Bulkowski tested and rated the various patterns, and the rounded, or bowl, pattern was the second most likely to rise, with a 54% chance to rise 20% or more. Even if a stock isn't the next big winner, it's a big bonus if you have a better than average chance of making money on the trade.
Beyond the breakout pattern, logically the top 10 stocks should have strong fundamentals and it's important to know exactly what made them go up. So in retrospect, I followed the trail of news releases and earnings reports fueling their growth.
Note
almost target hit
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.