{"product_id":"v22idbechpai","title":"V. 22:1(26-28,30-31): Identifying Bearish Chart Patterns (II) by Thomas N. Bulkowski","description":"Identifying Bearish Chart Patterns (II) by Thomas N. Bulkowski\u003cbr\u003e\u003cbr\u003eHeres the second and final installment\nabout bearish chart patterns.\u003cbr\u003e\u003cbr\u003eS omeone I know once\nmade the bold statement\nthat there is a\nchart pattern for any\ntrend that ends. I\ndont know if thats true, but here are 10 bearish patterns\nyou should know about.\u003cbr\u003e\u003cbr\u003eISLAND REVERSAL\u003cbr\u003e\u003cbr\u003eIsland tops are some of the easiest\npatterns to recognize. Figure 1 shows\nan example. Prices gap upward, meander\naround, then gap down. The\ngaps align, meaning that they share at\nleast one common price. Thus, price\nseems to hover like a blimp above the\nsurrounding countryside. Usually,\nprices move up and away from the\ntwo gaps, leaving clear sky below, as\nshown by the horizontal line in the\nfigure. At other times, prices will dip\ndown and close the first gap, but that\nshould not detract from the pattern \nit just makes islands harder to spot.\u003cbr\u003e\u003cbr\u003eLook for a two-gap pattern after a\nrising price trend. The gaps must\nhave some prices in common to set\noff the island.\u003cbr\u003e\u003cbr\u003eHow far will prices decline? Find\nthe predicted decline by first subtracting\nthe lowest low from the highest\nhigh in the pattern. That gives the\npatterns height. Next, subtract the\nheight from the lowest low to get the\nprice target. In the 245 patterns I\nlooked at, the decline averaged 21%,\nabout par for all bearish chart pattern\ntypes, and they met or exceeded the\nprice target 78% of the time.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134158401905,"sku":"\\V22\\C01\\005BULK.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_1ef671ff-0805-4522-975a-7e2effe207c9.jpg?v=1739669407","url":"https:\/\/shop.traders.com\/products\/v22idbechpai","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}