This is true regardless of bull or bear markets, up or down breakouts. The percentages of
chart patterns with breakouts within a third of the designated range that showed the best performance are:
Highest third: 5%
Middle third: 11%
Lowest third: 84%
I discovered another trend during chart pattern research that is similar. Here is where breakouts from the best-performing chart patterns with upward breakouts reside in the yearly price range:
Highest third: 27%
Middle third: 32%
Lowest third: 41%
For downward breakouts from chart patterns, the performance list is:
Highest third: 20%
Middle third: 25%
Lowest third: 55%
The results confirm that you should not short stocks making new highs but, rather, concentrate on those making new lows.
