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The Pattern section of Bollinger on Bollinger Bands is based on the pioneering work of Arthur Merrill on filtered waves and logarithmic point and figure.
There are 32 possible five-point patterns, 16 M patterns and 16 W patterns. You can see these patterns on the main pattern page: We list the M&W patterns separately in rank order from the most down sloping to the most up sloping. We also list the pattern by the type of technical formation, triangles, up trends, head and shoulders... This categorization can be seen at the bottom of the above page.
Patterns are defined by their most recent swing. If it is an upswing you have a W pattern, if it is a downswing you have an M pattern. In addition, patterns can evolve over time. For example a W1 pattern turns into a W2 as the rally extends and can eventually turn into a W3 if the rally carries far enough and ultimately into a W8. This pattern evolution can be seen for each of our M&W patterns on the main page by clicking on the pattern.
There are three main areas in our pattern analysis section, the Pattern Library, the Pattern Engine and Pattern Reversals.
The Library, can be viewed as lists of each of the M&W patterns or as lists of each of the technical descriptions. In either case click on selection you wish to view and a chart(s) will appear to the right along with a drop-down list of all the stocks currently in that pattern. If you click on a stock in the list you will be taken directly to the Pattern Engine display for that issue.
The Pattern Engine, displays the details of the pattern the stock is currently trading in. A picture of the pattern is presented along with the values of the current position and the last four turning points. There is also a pull-down box listing all the other stocks in the same pattern. Of particular interest is the completion percentage, which is the percentage of the current pattern's forecast that has been completed. The forecasts are arrived at by analyzing the stock's most recent up moves in W patterns or down moves in M patterns. There is a box on the left side of the screen that allows you to enter the symbol of a stock for which you want to see our pattern analysis.
The Pattern Reversals page lists all the stocks in our universe that reversed from M patterns to W patterns or from W patterns to M patterns the prior day: Clicking on a symbol in the list will take you to the Pattern Engine display for that issue. There is a link on the left that that converts the display into a printer friendly format.
If you find this analysis to be of interest, this pattern work is available in much greater depth at our web site www.PatternPower.com.
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