Encyclopedia Of Chart Patterns, 2nd Edition
On March 24, 2000, the financial world changed. No, that was not the date this book first hit the store shelves, but the beginning of a bear market that lasted 21?2 years. Finally, I had bear market data to use for finding chart patterns! After spending nearly 5 years recovering from the work needed to complete the first edition, I decided to undertake an update. I changed the editorial content of the book in small ways, but made substantial improvements in others. Here is the list of the important changes: ? Bull and bear market statistics for complete coverage. ? 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. ? More chart patterns. I added 14 new chart patterns. ? Event patterns. I added 9 new types of patterns, which I call event patterns. These include earnings surprises, drug approvals, store sales, and stock upgrades and downgrades. ? More samples. I found over 38,500 chart pattern samples, more than double the 15,000 used in the first edition, making many of the statistics rock solid. ? Keyed table entries. Each table entry appears in bold at the start of its corresponding text discussion for easy locating. ? Glossary and methodology. Instead of peppering the text with repeated explanations, a new chapter explains how I arrived at each table entry. Thanks to the thousands who purchased the first edition. I am confident that this second edition will help you become a more knowledgeable and successful trader.