• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk
Tim Mullooly on the Shakeout Pattern

The Shakeout Pattern

March 23, 2015 by Brendan Mullooly, CFP®

On this week’s Mullooly Asset Management video, Tim explains a point and figure pattern called the shakeout. While we refer to it as the shakeout, technically its name is the bullish shakeout formation. Like some other point and figure patterns, you can probably imply whether it’s a positive or negative development based off its name. The shakeout is most certainly a bullish pattern, as well as an interesting one because it contains both buy signals and sell signals within it.

The shakeout formation is one of Tom Dorsey‘s favorite patterns due to its high degree of reliability. This pattern should be looked for during strong bull markets.

Characteristics of a Shakeout

– The security and overall market should be in a strong uptrend.
– The security should be in a positive trend on its point and figure chart. A positive trend means trading above its bullish support line. Check out our video on bullish support lines here: https://mullooly.net/what-is-a-bullish-support-line/8037
– The security forms, but does not break a double top.
– It then breaks a double bottom sell signal, which is the first sell signal in its otherwise long uptrend.
– The “action point” of a shakeout occurs when the security reverses into X’s following the double bottom sell signal.
– The shakeout pattern is completed with a triple top buy signal.

It’s also important to determine whether the security has strong relative strength compared to the overall market. This is determined by its relative strength chart being on a buy signal or, at least, in X’s versus the market. We’ll discuss relative strength charts in future videos.

Make sure to watch the video, Tim’s visual example makes this pattern much easier to understand.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Videos, Chart School, Technical Analysis Tagged With: point and figure

About Brendan Mullooly, CFP®

Brendan Mullooly is a CERTIFIED FINANCIAL PLANNER™professional with Mullooly Asset Management, Inc.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.