Bar Chart Patterns

Question 1

Books

Answer 1

Thomas N. Bulkowski

Question 2

• Pullbacks occur more frequently
• Throwbacks occur more frequently

Answer 2

• on downward breakouts with less-than-average volume
• on upward breakouts with above-average volume

Question 3

Breakout on a gap

Answer 3

Reduces the odds that a retracement will occur

Question 4

Volume on a rectangle pattern

Answer 4

Tends to decline

Question 5

Shortfall

Answer 5

When, in a rectangle formation, the price fails to reach either the support or resistance zone

Question 6

Buying the support and selling the resistance

Answer 6

Works better in a trending channel than in a rectangle

Question 7

H&S, rectangles, triangles, channels, flags, pennants, wedges and bottom picture

Answer 7

Question 8

Diamond pattern

Answer 8

• A broadening pattern followed by a triangle
• Usually happens at the top of a sharp upward rise in prices

Question 9

Ideal situation for trading triangles

Answer 9

• Definite breakout
• High trading range within the triangle
• Upward-sloping volume
• Gap on the breakout
• *Seems to work better with small-cap stocks in a rising market

Question 10

Broadening pattern alternative name

Answer 10

Megaphone, funnel, reverse triangle and inverted triangle

Question 11

• Rising wedges
• Declining wedges

Answer 11

• tend to breakout downward (69%)
• tend to breakout upward (92%)*
• *Bulkowski 2010

Question 12

Cup and handle pattern

Answer 12

Question 13

Flags and pennants

Answer 13

are usually continuation patterns

Question 14

Island reversal

Answer 14

Question 15

Breakaway gap

Answer 15

Question 16

Runaway gap

Answer 16

Question 17

Exhaustion gap

Answer 17

Question 18

Common gap

Answer 18

Question 19

Sequence of gaps

Answer 19

Question 20

One-bar reversal

Answer 20

When a trading bar high is greater than previous bar high and the close is down from the previous bar close

Question 21

Two-bar reversal

Answer 21

Question 22

Horn pattern

Answer 22

Similar to a two-bar reversal but with a smaller bar in between

Question 23

Bullish Hook reversal

Answer 23

Question 24

Bearish Hook reversal

Answer 24

Question 25

Hikkake pattern

Answer 25

Question 26

Correction within a trend

Answer 26

Are usually profitable entry points

Question 27

Knockout or KO pattern

Answer 27

1. When a throwback occurs on a strong upward trend, place a stop buy at the high of the bar with the second low 2. If the next bar is lower, move the stop buy to its high 3. Once the position is executed, place a protective stop below the last low

Question 28

Oops buy pattern

Answer 28

Question 29

Oops sell pattern

Answer 29

Question 30

Shark pattern

Answer 30

Question 31

Marubozu

Answer 31

Question 32

Shark pattern (candlestick)

Answer 32

* Works better if the pattern is symmetrical * Buy at the height of the base high

Question 33

Inside bar conventional belief

Answer 33

When the price breaks in a direction from an inside bar, they will likely continue in the same direction

Question 34

NR4 (or NR7)

Answer 34

On day NR_{n + 1} place a buy order at day_n high and a sell order a day_n low

Question 35

Opening Range Breakout (ORB)

Answer 35

A method of entering a position once a setup has been established from a previous short-term pattern

Question 36

Doji pattern

Answer 36

Question 37

Windows pattern

Answer 37

Synonym for gap

Question 38

Kicking pattern

Answer 38

Question 39

Harami pattern

Answer 39

* Can indicate a reversal on an increase in volatility * Only the body of the second candle needs to be inside the range of the first one (not its shadow)

Question 40

Spinning tops pattern

Answer 40

Question 41

Three soldiers pattern

Answer 41

* The three bearish soldiers pattern is sometimes called the three black crows pattern * Can signal a reversal

Question 42

Morning and Evening star pattern

Answer 42

* The body of the star should not overlap the body of the preceding bar * The star can be of either color

Question 43

Hammer and hanging man pattern

Answer 43

Question 44

Inverted hammer and shooting star pattern

Answer 44

Question 45

Engulfing pattern

Answer 45

* Can indicate a reversal * Is stronger when the second bar is considerably larger than the first one

Question 46

Piercing line and dark cloud pattern

Answer 46

* The opening of the piercing line should be below the inferior shadow of the preceding bar * The opening of the dark cloud should be above the upper shadow of the preceding bar

Question 47

Three inside up and down pattern

Answer 47

Question 48

Three outside up and down pattern

Answer 48

Question 49

Three line strike pattern

Answer 49

Question 50

Upside Tasuki gap

Answer 50

Question 51

Downside Tasuki gap

Answer 51

Question 52

Tweezer pattern

Answer 52

Question 53

J-hook pattern

Answer 53

Question 54

Inverted J-hook pattern

Answer 54

Question 55

Matching low pattern

Answer 55

Question 56

Abandoned baby pattern

Answer 56

Question 57

Two black gapping pattern

Answer 57