Ascending Scallop / アセンディングスキャロップ
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A pattern where a U-shaped rounded bottom forms during an uptrend, after which the trend continues. A pullback from a high creates a gentle curve to find a bottom, then rallies back above the previous high to complete the pattern. Named for its scallop shell-like rounded shape, it may appear in succession.
Enter long when price clearly breaks above the previous high on a closing basis. A volume-accompanied breakout after confirming the U-bottom bounce is more reliable.
Project the range from the scallop's high to its bottom upward from the breakout point (previous high). For example: high at 1000, bottom at 880, range of 120, target at 1120.
Place a stop-loss slightly below the U-bottom's lowest point. Or project 50% of the scallop's range downward from the breakout point.
Volume decreases at the U-bottom and gradually increases during the rally. A volume surge when breaking above the previous high enhances reliability.