On this video I discuss a point and figure pattern referred to as the bullish catapult. As the name implies, this is a very positive pattern. Just think about the words bullish catapult for a moment. We all know that the word bullish suggests positivity, but what do catapults do? They launch objects over long distances. The bullish catapult is a very strong and positive pattern that can serve as a launching pad to higher prices.
The Steps of a Bullish Catapult
– The security must give a triple top buy signal on its point and figure chart
– It then pulls back into a column of O’s
– Before creating a double bottom, the security reverses to X’s creating a rising bottom
– The bullish catapult is completed with an additional double top buy signal
The triple top is a positive pattern. It’s followed by a rising bottom, which means demand is getting stronger. The final double top buy signal, that completes the bullish catapult, confirms the initial triple top buy signal. In point and figure charting, we refer to this combination of the triple top buy signal and double top buy signal as the bullish catapult.