Getting Started in Chart Patterns Books in the Getting Started In Series Getting Started In Currency Trading, Third Edition by Michael D Archer Getting Started In Forex Trading Strategies by Michael D Archer Getting Started In Asset Allocation by Bill Bresnan and Eric P Gelb Getting Started In Chart Patterns by Thomas Bulkowski Getting Started In Internet Auctions by Alan Elliott Getting Started In Mutual Funds, Second Edition by Alvin D Hall Getting Started In Stocks by Alvin D Hall Getting Started In Estate Planning by Kerry Hannon Getting Started In a Financially Secure Retirement by Henry Hebeler Getting Started In Online Personal Finance by Brad Hill Getting Started In REITs by Richard Imperiale Getting Started in Rebuilding Your 401(k), Second Edition by Paul Katzeff Getting Started In Security Analysis by Peter J Klein Getting Started In Global Investing by Robert P Kreitler Getting Started In ETFs by Todd K Lofton Getting Started In Futures, Fifth Edition by Todd Lofton Getting 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Started In Retirement Planning by Ronald M Yolles and Murray Yolles Getting Started In Chart Patterns, Second Edition by Thomas Bulkowski Getting Started in Chart Patterns S e c o n d E d i t i o n Thomas Bulkowski Cover image: © iStockphoto.com / BLACKRED Cover design: Wiley Copyright © 2014 by Thomas Bulkowski All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey The first edition of Getting Started in Chart Patterns was published by John Wiley & Sons, Inc, in 2006 Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages The Index of Chart and Event Patterns reproduced from Thomas N Bulkowski, The Encyclopedia of Chart Patterns, Second Edition (Hoboken, NJ: John Wiley & Sons, 2005) Reprinted with permission For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-on-demand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Library of Congress Cataloging-in-Publication Data: Bulkowski, Thomas N., 1957 Getting started in chart patterns / Thomas N Bulkowski — Second edition pages cm.—(Getting started in series) Includes index ISBN 978-1-118-85920-9 (paper)—ISBN 978-1-118-85923-0 (ebk)—ISBN 978-1-118-85911-7 (ebk) 1. Stocks—Charts, diagrams, etc. 2. Commodity futures—Charts, diagrams, etc. 3. Investment analysis. I. Title HG4638.B853 2014 332.63’2042—dc23 2013047227 Printed in the United States of America 10 To Mary Schramski Contents Preface to First and Second Editions ix Acknowledgments xi Chapter Introduction to Chart Patterns Chapter Identifying Chart Patterns Chapter The Truth about Trendlines 17 Chapter Support and Resistance The Most Important Chart Patterns 35 Chapter Ten Buy Signals 53 Chapter Ten Sell Signals 119 Chapter Special Situations 191 Chapter Busted Patterns Making Money by Trading Failure vii 225 viii Contents Chapter More Trades Putting It All Together 255 Chapter 10 The Art of Trading Checklists 285 Chapter 11 Crunching the Numbers 323 Glossary 327 Visual Index of Chart Patterns 333 About the Author 339 Index 341 335 Visual Index of Chart Patterns Double Tops, Adam & Adam, page 236 A Double Tops, Adam & Eve, page 236 A A Double Tops, Eve & Adam, page 236 Double Tops, Eve & Eve, page 236 A E E E E Flags, page 148 Flags, High and Tight, page 54 Gaps, page 203 Head-and-Shoulders Bottoms, page 310 G LS H Head-and-Shoulders Bottoms, Complex, page 106 RS Head-and-Shoulders Tops, page 120 H LS S S S H S RS 336 V isual Index of Chart Patterns Head-and-Shoulders Tops, Complex, page 120 H H S Horn Bottoms S H Horn Tops H Island Reversals, Bottoms H H G Island Reversals G Islands, Long G G G G Measured Move Down, page 160 Measured Move Up, page 160 Pennants, page 151 Pipe Bottoms, page 60 P P 337 Visual Index of Chart Patterns Pipe Tops, page 155 P Rectangle Bottoms, page 242 P Rectangle Tops, page 242 Rounding Bottoms, page 75 Rounding Tops, page 75 Scallops, Ascending, page 65 Scallops, Ascending and Inverted, page 65 Scallops, Descending, page 65 Scallops, Descending and Inverted, page 65 Three Falling Peaks, page 69 338 V isual Index of Chart Patterns Three Rising Valleys, page 72 Triangles, Ascending, page 245 Triangles, Descending, page 245 Triangles, Symmetrical, page 245 Triple Bottoms, page 99 Triple Tops, page 175 TT TB TB TT TT TB Wedges, Falling, page 246 Wedges, Rising, page 247 About the Author Thomas Bulkowski is a successful investor with 30 years of experience trading stocks He is considered to be a leading expert on chart patterns and is also an internationally known author of the Wiley titles Encyclopedia of Chart Patterns, Second Edition; Getting Started in Chart Patterns; Encyclopedia of Candlestick Charts; Trading Classic Chart Patterns; Visual Guide to Chart Patterns; and the Evolution of a Trader series: Trading Basics, Fundamental Analysis and Position Trading, and Swing and Day Trading Bulkowski is a frequent contributor to Technical Analysis of Stocks & Commodities magazine Before earning enough from his investments to retire from his day job at age 36, he was a hardware design engineer at Raytheon and a senior software engineer for Tandy Corporation His website address is www.thepatternsite.com There you will have free access to hundreds of articles, research, and blog posts written by Bulkowski 339 index Advanced tactics of trendlines, 31–32 Ascending and symmetrical triangles case study, 147–148 identification, 142–143 measuring success, 146–147 sell signals, 313 trading and trading tips, 143–145 summary, 185–186 Ascending broadening wedges buy signals, 308 downward breakouts, 229 identification, 86–87 measuring success, 91–92 trading and trading tips, 87–91 upward breakouts, 230 summary, 115–116 Ascending scallops chart pattern, 273 inverted, 64–69, 112–113, 305 Ascending triangles, 143–145, 243–244 Average rise, 54 Average rise or decline (ARD), 53, 323 Bear markets bottom fishing, 279–280, 322 decline in, 183 defined, 48 diversification, 293–294 head-and-shoulders, 122 high and tight flag (HTF) formation, 56 one month benchmark, 293–294 selling short, 174 transition to bull, 107 triple tops, 122 Blank chart, Breakdown failure rate, 323 Breakout volume, 25 Broadening bottom, 231–232 Broadening formation, right angled and ascending, 230–231 Broadening formation, right angled and descending, 233–234 Broadening top, 228–229 Broadening tops and bottoms case study, 173–174 identification, 168–171 measuring success, 172–173 sell signals, 315 trading and trading tips, 171–172 summary, 188 Broadening wedge, ascending, 229–230 Broadening wedge, descending, 232–233 Bulkowski, Thomas, 21, 40, 125, 135, 201, 213, 323 Bull and bear markets busted patterns, 225 chart pattern source, 323 round numbers, 43 trading with the trend, 191–193 and traps, special situations, 316 summary, 221 Bull and bear traps about, 193–194 summary, 221 Bull markets, 46, 48 Bullish and bearish gaps, 204–205 Busted broadening patterns about, 227–228 broadening bottom, 231–232 broadening formation, right angled and ascending, 230–231 341 342 index Busted broadening (continued ) broadening formation, right angled and descending, 233–234 broadening top, 228–229 broadening wedge, ascending, 229–230 broadening wedge, descending, 232–233 case studies, 234–235 Busted patterns about, 225–226 ascending triangles, 243–244 busted broadening patterns, 227–235 busted trading tips, 249–251 case studies, 247–248 descending triangles, 244–245 diamonds, doubles, and head-andshoulders, 235–242 falling wedges, 246–247 frequency, 251–252 performance, 226 rectangles, 242–243 rising wedges, 247 single, double and triple busts, 226–227 symmetrical triangles, 245–246 summary, 252–254, 319–321 Busted trading tips downtrends, 249–251 uptrends, 250–251 Buy and hold trading, 290 Buy signals about, 53–54 ascending broadening wedges, 86–92, 308 descending triangles, 81–85, 307–308 Eve & Eve double bottoms, 92–99, 308–309 head-and-shoulders bottoms, 106–110, 310–311 high and tight flag (HTF), 54–59, 304 introduction, 303 inverted and ascending scallops, 64–69, 305 pipe bottoms, 59–64, 304–305 rising valleys, 305–306 rounding bottoms, 75–80, 306–307 three rising valleys, 69–75 triple bottoms, 99–105, 309–310 summary, 111–118, 303–311 Buying trading checklists, 285–289 Candlesticks, Fibonacci, and Chart Patterns Trading Tools, (R Fischer and J Fischer), 39 Case studies ascending and symmetrical triangles, 147–148 broadening tops and bottoms, 173–174 busted broadening patterns, 234–235 busted patterns, 247–248 dead-cat bounce, 197 diamond tops and bottoms, 131–133 diamonds, doubles, and head-andshoulders, 240–242 double tops, 139–141 Eve & Eve double bottoms, 98–99 flags and pennants, 154–155 head-and-shoulders tops, 124–125 high and tight flag, 58–59 inverted dead-cat bounce (IDCB), 200–202 measured moves and the simple ABC correction, 168 partial rises and declines, 209–210 pipe bottoms, 64 pipe tops, 158–159 triple bottoms, 104–105 triple tops, 180 Chart patterns about, 1–2 advantages of, 3–4 breakout, 10, 11 chart pattern SAR, 36–37 disadvantages of, 4–5 identification, 7–15, 299–300 introduction, 299 meanings of, 5–6 performance, 323–326 retail investor, 2–3 summary, Chasing tails, 213–215 Close, 13 Commodity channel index (CCI), 215 Confirmation, point, price, level, or line, 68 Connecting peaks, 9–10 Connecting valleys, 11 Consolidation region, 41 Continuations, 69, 74 Corrective phase, 48, 49 Countertrend pattern, 193 Curved trendlines, 21 Days to ultimate high or low, 295 DCCI (dual CCI), 215, 258, 259 Dead-cat bounce See also Inverted dead-cat bounce (IDCB) about, 195–196 case study, 197 by the numbers, 196 special situations, 316–317 trading and trading tips, 197 summary, 221 Descending broadening wedges, 232–233 Descending triangles and ascending triangles, 141 breakouts from, 114–115 busted, 82–83, 84, 244–245, 254, 320 buy signals, 307–308 with downward breakout, 244–245 example, 81 vs flag or pennant, 151 formation, 47, 49 guidelines for finding, 82, 84 height of, 85, 115 index 343 identification, 81–82 measure rule for, 85 measuring success, 85 multiple valleys, 11, 300 price breaks, 147 with pullback, 274 SAR to trade using, 46 trading and trading tips, 82–85 summary, 114–115 Diamond bottoms, diamonds, doubles, and head-and-shoulders, 238–239 Diamond tops, diamonds, doubles, and head-and-shoulders, 235–236 Diamond tops and bottoms about, 126–127 case study, 131–133 identification, 127–128 measuring success, 130–131 sell signals, 311–312 trading and trading tips, 128–130 summary, 184–185 Diamonds, doubles, and head-andshoulders case study, 240–242 diamond bottoms, 238–239 diamond tops, 235–236 double bottoms, 239 double tops, 236–237 head-and-shoulders bottoms, 239–240 head-and-shoulders tops, 237–238 Double bust, 227 Double tops case study, 139–141 diamonds, doubles, and head-andshoulders, 236–237 identification, 133–136 measuring success, 138–139 sell signals, 312 trading and trading tips, 136–138 summary, 185 Downtrends, 249–251 Downward breakout, 31 Drawing trendlines, 26–27 344 Encyclopedia of Chart Patterns (Bulkowski), 135, 323 Eve & Eve double bottoms buy signals, 308–309 case study, 98–99 identification, 92–96 measuring success, 97 trading and trading tips, 96–97 summary, 116 Eve and Adam peaks, 133 Event pattern, 196 External trendlines, 19–20 Falling wedges, 246–247 Fibonacci retracements, 37–39 Fischer, Jens, 39 Fischer, Robert, 39 Flags and pennants about, 148–149 case study, 154–155 identification, 149–151 measuring success, 154 sell signals, 313–314 trading and trading tips, 151–154 summary, 186–187 Flat base definition, 202–203 described, 152 special situations, 317 summary, 222 Gaps about, 203–205 special situations, 317 summary, 222 Half-staff patterns, 39, 101, 102, 130 Head-and-shoulders bottoms buy signals, 310–311 diamonds, doubles, and head-andshoulders, 239–240 identification, 106–107 measuring success, 110 trading and trading tips, 107–110 summary, 118–119 index Head-and-shoulders tops about, 119 case study, 124–125 diamonds, doubles, and head-andshoulders, 237–238 identification, 120–122 measuring success, 123–124 sell signals, 311 trading and trading tips, 122–123 summary, 184 High and tight flag (HTF) after an extended downturn, 56 buy signals, 54–59, 304 case study, 58–59 identification, 54–55 measuring success, 58 trading and trading tips, 57–58 summary, 111 Horizontal consolidation, 41 Horizontal consolidation region (HCR), 40–42 Identification ascending and symmetrical triangles, 142–143 ascending broadening wedges, 86–87 broadening tops and bottoms, 168–171 descending triangles, 81–82 diamond tops and bottoms, 127–128 double tops, 133–136 Eve & Eve double bottoms, 92–96 flags and pennants, 149–151 head-and-shoulders bottoms, 106–107 head-and-shoulders tops, 120–122 high and tight flag, 54–55 inverted and ascending scallops, 65–67 measured moves and the simple ABC correction, 160–162 pipe bottoms, 60–61 pipe tops, 156–157 rounding bottoms, 75–78 three rising valleys, 69–72 triple bottoms, 99–101 triple tops, 175–177 Identification of chart patterns blank chart, 7–9 connecting peaks, 9–10 connecting valleys, 11 patterns with curves, 11–12 patterns with diagonals, 13 patterns with multiple peaks, 14–15 Intermediate term, 23 Intermediate-term trendlines, 23 Internal trendlines, 20–21 Intraday, 32 Inverted and ascending scallops about, 64–65 buy signals, 305 identification, 65–67 measuring success, 69 trading and trading tips, 67–69 summary, 112–113 Inverted dead-cat bounce (IDCB) about, 197–200 case studies, 200–202 special situations, 317 trading and trading tips, 199–200 summary, 221–222 Kaufman, Perry, 215 Limit order, 104 Linear regression, 140 Long term, 24 Long-term trendlines, 23 Lower highs and higher lows about, 205–207 special situations, 317 summary, 222 Measure rule about, for trendlines, 25–26 Measured move down (MMD), 160 Measured move up (MMU), 160 Measured moves and the simple ABC correction case study, 168 index 345 identification, 160–162 measuring success, 167–168 MMD and MMU profiles, 167 MMD and MMU trading tips, 165–167 sell signals, 314–315 simple ABC correction, 162–164 simple ABC correction trading tips, 164–165 summary, 187–188 Measuring success ascending and symmetrical triangles, 146–147 ascending broadening wedges, 91–92 broadening tops and bottoms, 172–173 descending triangles, 85 diamond tops and bottoms, 130–131 double tops, 138–139 Eve & Eve double bottoms, 97 flags and pennants, 154 head-and-shoulders bottoms, 110 head-and-shoulders tops, 123–124 high and tight flag, 58 inverted and ascending scallops, 69 measured moves and the simple ABC correction, 167–168 pipe bottoms, 64 pipe tops, 158–159 rounding bottoms, 80 three rising valleys, 72–74 triple bottoms, 104 triple tops, 179–180 Median, 23 MMD (measured move down) profiles, 167 trading tips, 165–167 types of, 160 MMU (measured move up) profiles, 167 trading tips, 165–167 types of, 160 346 Neckline, 41, 42 Number crunching, 323–326 1-2-3-trend change method, 28–30 Partial decline, 44, 45 Partial rise, 46, 170 Partial rises and declines about, 207–209 case study, 209–210 special situations, 318 summary, 222 Pattern height, 63, 64 Patterns See also Busted patterns; Chart patterns; Half-staff patterns; Identification of chart patterns with curves, 11–12 with diagonals, 13 with multiple peaks, 14–15 Payout ratio, 281 Peaks and valleys, 39–40 Pennants See also Flags and pennants appearance, 151 examples, 64 vs flags, 149 half-staff, 39, 101 length, 150 measure rule, 154 price movement, 153–154 pullback, 314 reliability, 152, 186 slope and performance, 152–153 trading tips, 152–153 Pipe bottoms about, 59–64 buy signals, 304–305 case study, 64 identification, 60–61 measuring success, 64 trading and trading tips, 61–64 summary, 111–112 Pipe tops about, 155–156 case study, 158–159 identification, 156–157 index measuring success, 158–159 sell signals, 314 trading and trading tips, 157–158 summary, 187 Position traders, 62 Position trading, 62, 290 Price close, 226 Price closure, 62 Pullbacks, 31, 32 Quick rises and declines diamond tops and declines, 210–211 special situations, 318 summary, 223 Rectangles, 242–243 Relative strength index (RSI), 173 Retail investor, 2–3 Retrace, 38 Retracement percentages, 39 Reversal, 69, 70 Rise-retrace pattern, 37 Rising valleys, 305–306 Rising wedges, 247 Rockefeller, Barbara, 32 Round numbers, 42 Round numbers SAR, 42–44 Rounding bottoms buy signals, 306–307 identification, 75–78 measuring success, 80 trading and trading tips, 78–80 summary, 113–114 RSI (relative strength index), 173 Scallops See also Inverted and ascending scallops curves in, 12–13, 15, 300 trading tips, 67 varieties, 12 Sell details, 174–180 Sell short, 191 Sell signals ascending and symmetrical triangles, 141–148, 313 index broadening tops and bottoms, 168–174, 315 diamond tops and bottoms, 126–133, 311–312 double tops, 133–141, 312 flags and pennants, 148–155, 313–314 head-and-shoulders tops, 119–125, 311 measured moves and simple ABC correction, 160–168 measured moves and the simple ABC correction, 314–315 pipe tops, 155–160, 314 sell details, 174–180 triple tops, 174–180, 315–316 summary, 183–189, 311–317 A Short Course in Technical Trading (Kaufman), 215 Short sale, 192 Short term, 23 Short-term trendlines, 23 Simple ABC correction, 162–164 See also Measured moves and the simple ABC correction Single, double and triple busts, 226–227, 229 Single bust, 227 Special situations bull and bear markets, 191–193 bull and bear markets and traps, 316 bull and bear traps, 193–194 dead-cat bounce, 195–197, 316–317 flat base, 202–203, 317 gaps, 203–205, 317 inverted dead-cat bounce (DCB), 197–202, 317 lower highs and higher lows, 205–207, 317 partial rises and declines, 207–210, 318 quick rises and declines, 210–211, 318 spikes and tails, 212–215, 318 stops, 215–217, 318 throwbacks and pullbacks, 217–221, 319 347 summary, 221–223, 316–319 Sperandeo, Victor, 28 Spikes, 158 Spikes and tails about, 212–213 chasing tails, 213–215 special situations, 318 Stop running, 213 Stop running or gunning the stops, 213 Stops special situations, 318 trailing stops, 216–217 volatility stops, 215–216 summary, 223 Summaries ascending and symmetrical triangles, 185–186 ascending broadening wedges, 115–116 broadening tops and bottoms, 188 bull and bear markets, 221 bull and bear traps, 221 busted patterns, 319–321 buy signals, 303–311 chart pattern identification, 299–300 chart pattern introduction, 299 dead-cat bounce, 221 descending triangles, 114–115 diamond tops and bottoms, 184–185 double tops, 185 Eve & Eve double bottoms, 116 flags and pennants, 186–187 flat base, 222 gaps, 222 head-and-shoulders bottoms, 118–119 head-and-shoulders tops, 184 high and tight flag (HTF), 111 inverted and ascending scallops, 112–113 inverted dead-cat bounce (IDCB), 221–222 lower highs and higher lows, 222 measured moves and the simple ABC correction, 187–188 partial rises and declines, 222 348 Summaries (continued ) pipe bottoms, 111–112 pipe tops, 187 quick rises and declines, 223 rounding bottoms, 113–114 sell signals, 311–317 special situations, 316–319 stops, 223 support and resistance, 302–303 three rising valleys, 113 throwbacks and pullbacks, 223 trade examples, 321–322 trading checklists, 299–322 trendlines, truth about, 300–302 triple bottoms, 117 triple tops, 188–189 Support and resistance (SAR) about, 35–36 chart pattern SAR, 36–37 Fibonacci retracements, 37–39 horizontal consolidation region (HCR), 40–42 peaks and valleys, 39–40 round numbers SAR, 42–44 for trade, 46–49 trendlines and channels, 44–45 and volume, 45–46 summary, 50–51, 302–303 Swing trading, 218, 290 Symmetrical triangles, 143, 145, 245–246 Technical Analysis For Dummies (Rockefeller), 32 Three rising valleys identification, 69–72 measuring success, 74–75 trading and trading tips, 72–74 summary, 113 Throwbacks, 32 Throwbacks and pullbacks differentiation between, 217–221 special situations, 319 summary, 223 Touch spacing, 21–22 index Trade, 46–49 Trade examples EMC, 265–268 Giant Industries, 259–262 Great Plains Energy, 279–281 Honeywell, 276–279 IMC Global, 255–259 JLG industries, 271–274 Lam Research, 262–265 Rohm and Hass, 268–271 Southwest Airlines, 274–276 summary, 281–283, 321–322 Trade with the trend, 191, 192, 193 Trader Vic: Methods of a Wall Street Master (Sperandeo), 28 Trading and trading tips ascending and symmetrical triangles, 143–145 ascending broadening wedges, 87–91 broadening tops and bottoms, 171–172 dead-cat bounce, 197 descending triangles, 82–85 diamond tops and bottoms, 128–130 double tops, 136–138 Eve & Eve double bottoms, 96–97 flags and pennants, 151–154 head-and-shoulders bottoms, 107–110 head-and-shoulders tops, 122–123 high and tight flag, 57–58 inverted and ascending scallops, 67–69 inverted dead-cat bounce (IDCB), 199–200 pipe bottoms, 61–64 pipe tops, 157–158 rounding bottoms, 78–80 three rising valleys, 72–74 triple bottoms, 101–104 triple tops, 177–179 Trading Basics: Evolution of a Trader (Bulkowski), 32 Trading checklists before buying, 285–289 trading psychology, 297–298 trading tips, general, 292–297 when to sell, 290–292 summary, 299–322 Trading Classic Chart Patterns (Bulkowski), 21, 125, 201, 213 Trading psychology checklists, 297–298 Trading styles, 290 Trading tips MMD and MMU, 165–167 simple ABC correction, 164–165 trading checklists, 292–297 Trailing stops, 216–217 Trend, 17 Trend change, 28, 226, 227 Trend start, 58 Trendlines about, 17–18 advanced tactics of, 31–32 and breakout volume, 25 and channels, 44–45 curved, 21 described, drawing trendlines, 26–27 examples of, 18–19 external, 19–20 intermediate-term, 23 internal, 20–21 long-term, 23 measure rule for, 25–26 1-2-3-trend change method, 28–30 sample trade using, 30–31 short-term, 23 touch spacing, 21–22 trendline angles, 24 index 349 trendline length, 23 trendline touches, 23 truth about, 300–302 types of, 19–22 summary, 32–34 Triple bottoms buy signals, 309–310 case study, 104–105 identification, 99–101 measuring success, 104 trading and trading tips, 101–104 summary, 117 Triple tops case study, 180 identification, 175–177 measuring success, 179–180 sell signals, 315–316 trading and trading tips, 177–179 summary, 188–189 Triple-bust, 227 Ultimate high, 25, 60, 61 Ultimate low, 25, 179 Up-sloping necklines, 117 Uptrends, busted trading tips, 250–251 Volatility stops, 215–216, 217 Volume, 45–46 When to sell checklist, 290–292 Yearly price, 159 Yearly trading range, 158, 159