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Other patterns to look for

Saucer-with-handle

  • Similar to cup-with-handle, but saucer stretches over longer period of time.
  • Pattern is shallower

Double-bottom

  • Appears like the letter “W”
  • Second bottom of the W should match the price level (low) of the first, or clearly undercut it, shaking out weaker investors.
  • Pivot buy point is located at the top of the right side of the W, at least equal in price to the middle point of the W.
  • If W has a handle, peak of the handle indicates the buy point
  1. Beginning of base
  2. Bottom of first leg
  3. Middle of W (sets the buy point)
  4. Bottom of second leg
  5. Top of W or start of handle
  6. Bottom part of handle (volume up at buy point)

Flat Base

  • Second stage base after 20% advance from cup with handle or double bottom.
  • Moves stright sideways in tight range for ~5-6 weeks
  • Does not correct more than 10-15%
  • Might give you another opportunity to buy a stock after a big run.

Square Box

  • Lasts 4 to 7 weeks, only 10-15% corrects, has square & boxy look
  • Volume on pullback subsides; experiences big volume on box breakout.
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