As of 09/22/2021
  Indus: 34,258 +338.48 +1.0%  
  Trans: 14,001 -67.19 -0.5%  
  Utils: 898 -0.44 0.0%  
  Nasdaq: 14,897 +150.45 +1.0%  
  S&P 500: 4,396 +41.45 +1.0%  
YTD
 +11.9%  
 +11.9%  
 +3.9%  
 +15.6%  
 +17.0%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow930 or 890 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/22/21
As of 09/22/2021
  Indus: 34,258 +338.48 +1.0%  
  Trans: 14,001 -67.19 -0.5%  
  Utils: 898 -0.44 0.0%  
  Nasdaq: 14,897 +150.45 +1.0%  
  S&P 500: 4,396 +41.45 +1.0%  
YTD
 +11.9%  
 +11.9%  
 +3.9%  
 +15.6%  
 +17.0%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow930 or 890 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/22/21

Bulkowski on the Best Chart Patterns

 

Note as of 9/20/21: The following statistics have not been updated with more recent information, so they are outdated. This page provides a ranking of patterns, sorted by various means (performance, failure rate, performance over the decades) but not like the list below. However, the pages at the link have been updated recently.

 Pattern: Up Breakouts  1 Month
Gain 
 2 Month
Gain 
 3 Month
Gain 
High and tight flags22%21%21%
Eve & Eve double bottom9%12%13%
Scallop, ascending and inverted11%12%13%
Rectangle Bottom8%11%14%
Adam & Adam double bottom7%10%12%
Adam & Eve double bottom7%10%10%
Eve & Adam double bottom7%10%14%
Falling wedge8%10%9%
Rounded top7%10%14%
Flag8%9%7%
 Pattern: Down Breakouts  1 Month
Loss 
 2 Month
Loss 
 3 Month
Loss 
Complex head-and-shoulders top-8%-10%-10%
Head-and-shoulders top-7%-8%-7%
Diamond top-8%-7%-6%
Diamond bottom-10%-5%-4%
Scallop, descending-6%-5%-4%
Adam & Adam double top-6%-4%-3%
Right-angled and descending broadening formation-5%-4%0%
Rounded top-6%-4%-4%
Scallop, descending and inverted-4%-4%-4%
Triangle, descending-5%-4%-3%

The table shows the best performing chart patterns for upward breakouts (top half) and downward breakouts (bottom half), sorted by the 2 month's performance column.

I scanned my database of chart patterns (the popular ones) and found over 30,000 samples. Then I measured the price move 1, 2, 3 and 6 months after the breakout. However, I show only a maximum of 3 months in the table.

This measurement technique is different than the one I used in my books. There, I measured the move assuming a perfect trade, from breakout to ultimate high or low (after which price dropped or rose by at least 20%).

This table is just another way of slicing the same information. However, it does contain surprises.

Notice that the cup with handle doesn't appear in the list. That's because performance is poor -- it ranked 11th, so it didn't make the top 10.

Click on the associated link for more information about a chart pattern.

-- Thomas Bulkowski. Donate now to keep this website free.

Top of page More

See Also

  • Alphabetical list of chart pattern performance, by rank.
  • Failures of chart patterns sorted by break even failure rate rank.
  • Performance of chart patterns, sorted by average rise or decline rank.
  • Alphabetical list of event pattern performance, by rank.
  • Failures of event patterns sorted by break even failure rate rank.
  • Performance of event patterns, sorted by average rise or decline rank.
  • Best buy price. The best buy price is $20 or below.
  • Failures. Which months show the most failures?
  • Failure rates. Chart patterns fail more often than before.
  • Best buy days. Which day of the week is the best one to buy or sell?
  • Best buy months. Can buying at the end of the worst performing month and selling at the best performing be profitable?
  • Seasonality. What are the best months to buy and sell stocks?

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Encyclopedia of Candlestick Charts Trading Classic Chart Patterns

Copyright © 2005-2021 by Thomas N. Bulkowski. All rights reserved.
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Some pattern names are registered trademarks of their respective owners.

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Sad case: two dozen empties.Smiley