✅ Chart resembles a cup with a handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: high of the handle
✅ Handle length: 1 week
✅ Handle depth: no more than 15%
8 Chart Patterns by William O'Neil
Let's break them down one by one🧵
✅ Chart resembles a cup with a handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: high of the handle
✅ Handle length: 1 week
✅ Handle depth: no more than 15%
✅ Chart is just a cup, no handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: High of left side of cup
✅ Base resembles a "W"
✅ Base length: Min. 7 weeks
✅ Base depth: < 40%
✅ Buy point: middle of "W"
✅ Second low must undercut first low
✅ Base resembles a shallow consolidation
✅ Prior uptrend must be greater than 30%
✅ Base length: Minimum of 5 weeks
✅ Base depth: < 15%
✅ Buy point: High of structure
✅ Base resembles a pole & flag
✅ Base length: 3-5 weeks
✅ Base depth: < 25% (flag)
✅ Stock must run up 100% in less than 8 weeks (flag pole)
✅Buy Point: High of flag
✅ Normal base just for IPOs
✅ Base length: Minimum of 7 days (up to 5 weeks)
✅ Base depth: < 20% (sometimes 50% in some market environments)
✅ Buy point: high of the base
✅ Base on base on base pattern with higher lows
✅ Constructed during market weakness
✅ Base length: 9-16 weeks
✅ Base depth: 6-25%
✅ Buy point: High of the third pullback
✅ Forms after breakout out of a cup & handle / double bottom
✅ Base length: 4-7 weeks
✅ Base depth: < 15%
✅ Buy point: High of the structure
✅ Square box is quicker than a flat base
✅ Tightness in price action
✅ Dryup in volume under pivot
✅ Increasing volume through the pivot point
All of the supply has been accumulated by institutions and they begin their markup phase. 📈
Learning these patterns will help you spot & trade the biggest winners in the market!
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