Market Industrials (^DJI): Transports (^DJT): Utilities (^DJU): Nasdaq (^IXIC): S&P500 (^GSPC): |
As of 12/03/2018 25,826 287.97 1.1% 10,850 30.24 0.3% 749 6.64 0.9% 7,442 110.97 1.5% 2,790 30.20 1.1% |
YTD 4.5% 2.2% 3.5% 7.8% 4.4% |
26,200 or 24,300 by 12/15/2018
11,200 or 10,100 by 12/15/2018
765 or 730 by 12/15/2018
7,800 or 7,200 by 12/15/2018
2,875 or 2,700 by 12/15/2018
|
Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions.
See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.
Statistics updated on 11/30/2018.
For more information on this pattern, read
Encyclopedia of Chart Patterns Second Edition,
pictured on the right, pages 536 to 549.
If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. — Tom Bulkowski
$ $ $
Pipe bottoms are excellent performers in a bull market. They
have a modest break even failure rate and high average rise. The bad news is that they appear on the weekly scale, so the
delay buying in can be costly. Nevertheless, you should wait for confirmation before trading this and other chart
patterns. Discovered by Thomas Bulkowski in 1998.
Pipe Bottom Identification Guidelines
Characteristic | Discussion |
Weekly chart | Pipes appear on the daily scale but the ones on the weekly charts perform better. Use the weekly chart. |
Price trend | Usually downward leading to the pattern. |
Shape | Twin and adjacent downward spikes. On a bar chart, the two price bars look like spikes. On a candlestick chart, the candles can be any shape (from doji to Marubozu). In other words, don’t let the term spike mislead you. |
Overlap | The 2 weeks often have a large price overlap but need not bottom at the same price. The median bottom price variation is 19 cents. |
Volume | Most pipes show above average volume on one or both spikes. |
Obvious | The pipe should stand-alone and be obvious on the chart. The spike should clear the surrounding price action. |
Downtrends | The best performing pipes appear at the end of downtrends. |
Confirmation | The pattern confirms (becomes a valid pattern) when price closes above the highest high in the pattern. |
Pipe Bottom Trading Tips
|
The Measure Rule Spike |
Pipe Bottom Example
The above figure shows an example of a pipe bottom chart pattern. This pipe bottom appears as part of a retrace in an uptrend,
signaling higher prices ahead. The retrace begins at A and bottoms at the pipe then price
begins its recovery. Shown on the weekly scale.
— Thomas Bulkowski
Other Pipe Bottom Examples
Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions.
See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.
You have a drinking problem if every night you’re beginning to find your roommates’s cat more and more attractive.
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