Definition of Stock Pattern Terms

Experts in this field may differ somewhat in the definitions stated below, but the definitions given are those used by ARHP Foundation, Inc.
In figure 1, the following definitions are given:
1) Throwback: an event where the stock pattern pierces the upper trendline, rises less than 5% and returns to the upper trendline.
2) Pullback: an event where the stock pattern pierces the lower trendline, falls less than 5% and returns to the lower trendline.
3) Throwbacks and pullbacks typically last 1-2 weeks, with the maximum time period being 30 days. Any time period outside the trendlines that exceeds 30 days is considered as no longer part of the pattern.
4) A pattern is considered to be valid when the stock price (approximately) touches the upper and lower trendlines twice each.


Figure 1 – Patterns and Trendlines

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