8 Chart Patterns by William O'Neil
Let's break them down one by one🧵
Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.
✅ 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%
There is also a Cup without Handle pattern.
✅ Chart is just a cup, no handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: High of left side of cup
The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.
✅ Base resembles a "W"
✅ Base length: Min. 7 weeks
✅ Base depth: < 40%
✅ Buy point: middle of "W"
✅ Second low must undercut first low
The Flat Base pattern is another well known structure coined by William O'Neil.
✅ 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
