8 Chart Patterns by William O'Neil
Let's break them down one by oneπ§΅
Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.
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Chart resembles a cup with a handle
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Base length: Minimum 7 weeks
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Base depth: 20-30%
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Buy point: high of the handle
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Handle length: 1 week
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Handle depth: no more than 15%
There is also a Cup without Handle pattern.
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Chart is just a cup, no handle
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Base length: Minimum 7 weeks
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Base depth: 20-30%
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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.
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Base resembles a "W"
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Base length: Min. 7 weeks
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Base depth: < 40%
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Buy point: middle of "W"
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Second low must undercut first low
The Flat Base pattern is another well known structure coined by William O'Neil.
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Base resembles a shallow consolidation
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Prior uptrend must be greater than 30%
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Base length: Minimum of 5 weeks
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Base depth: < 15%
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Buy point: High of structure