Encyclopedia of Chart Patterns

On March 24, 2000, the financial world changed. That is the beginning of a bear market that lasted 21⁄2 years. Finally, I had bear market data to use for finding chart patterns!

Here is the list of the important changes:

1. Bull and bear market statistics for complete coverage.
2. Expanded statistics, all in a similar format:

• Results Snapshot, at the start of each chapter shows the most important numbers and surprises.
• General statistics, including the average rise or decline, busted pattern performance, and benchmark performance.
• Failure rates, a list of ten breakpoints to show how often a pattern fails.
• Breakout and postbreakout statistics, showing performance over the yearly price range, pullback rates, and performance after a gap.
• Frequency distribution of days to the ultimate high or low, showing when the trend is likely to end.
• Size statistics, describing how performance varies for pattern height, width, and combinations of both.
• Volume statistics, including volume trend, a new concept I call volume shapes, and breakout day volume.
• For best performance, a list of trading tips and where to find them in each chapter.