Bulkowski’s Volume Shapes

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Volume has in five distinct shapes but two types appear most often during the formation of chart patterns: U and dome. The other shapes, up, down, and flat, I lump together as a random shape because they are rare. Think of the random volume shape as not U and not dome.

Usually, the volume shape is obvious except in long chart patterns, such as rounding turns, which may have several volume shapes. Use the most recent volume shape (the volume shape closest to the breakout) as the determining pattern. At the end of this page is a table of patterns that don’t have a volume preference. For more information consult the book Encyclopedia of Chart Patterns, Second Edition and the following...

U-shaped volume

Dome shaped volume

Random shaped volume

No Performance Difference

U-shaped volume

U-shaped volume chart pattern

Volume is higher at the ends of the chart pattern than in the middle. Usually, the volume peaks correspond to price turning points in the chart pattern. U-shaped volume has the most chart patterns in its list – 27. The following table shows which chart patterns do better postbreakout with U-shaped volume.

Chart Patterns in a bull market

Big W, up and down breakouts

Broadening formation, right-angled and ascending, down breakouts

Broadening formation, right-angled and descending, up breakouts

Broadening tops, down breakouts

Broadening wedge, ascending, up breakouts

Broadening wedge, descending, down breakouts

Bump-and-run reversal bottoms

Cup with handle

Diamond tops, down breakouts (tie with dome-shape)

Double bottoms, Eve & Eve

Double tops, Adam & Eve

Double tops, Eve & Eve (tied with random)

Flags, down breakouts

Head-and-shoulders bottoms

Head-and-shoulders bottoms, complex (tied with random)

Head-and-shoulders tops

Head-and-shoulders tops, complex

Island reversals, up breakouts

Pennants, up or down breakouts

Rounding tops, up or down breakouts

Scallops, ascending, up breakouts

Three falling peaks

Three rising valleys

Triangles, ascending, down breakouts.

Triangles, descending, up breakouts.

Triangles, symmetrical, up breakouts (tied with dome shape)

Triple tops

Wedges, rising, up breakouts

Dome shaped volume

Dome-shaped volume chart pattern

Dome shaped volume is the inverted version of the U-shape. Volume is higher in the middle of the chart pattern than at the ends. Dome shaped volume has 17 patterns in its list, the smallest of the three shapes. The following table shows which chart patterns do better with dome-shaped volume.

Chart Patterns in a bull market

Broadening formation, right-angled and ascending, up breakouts

Broadening tops, up breakouts

Diamond bottoms, up breakouts

Diamond tops, down breakouts (tie with U-shape)

Double bottoms, Adam & Adam

Double bottoms, Adam & Eve

Double bottoms, Eve & Adam

Double tops, Eve & Adam

Islands, long, up or down breakouts

Rectangle tops, down breakouts

Scallops, ascending, down breakouts

Scallops, descending, up breakouts

Triangles, descending, down breakouts (tied with random shape)

Triangles, symmetrical, up breakouts (tied with U shape)

Triple bottoms

Wedges, falling, down breakouts (tied with random shape)

Wedges, rising, down breakouts

Random volume shape

Random-shaped volume chart pattern

A random volume shape is one that is not domed and not U-shaped. It may be flat, inclined, declined, or just have a rugged appearance with no discernable shape. The random volume shape has 20 entries in its list, second only to the U shape. The following chart patterns perform better with a random volume shape.

Chart Patterns in a bull market

Broadening bottoms, up or down breakouts

Broadening formation, right-angled and descending, down breakouts

Broadening wedge, descending, up breakouts

Diamond bottoms, down breakouts

Diamond tops, up breakouts

Double tops, Adam & Adam

Double tops, Eve & Eve (tied with U-shape)

Flags, up breakouts

Flags, high and tight

Head-and-shoulders bottoms (tied with U-shape)

Island reversals, down breakouts

Rectangle bottoms, up or down breakouts

Rectangle tops, up breakouts

Rounding bottoms

Scallops, descending, down breakouts

Triangles, ascending, up breakouts.

Triangles, descending, down breakouts (tied with dome shape)

Triangles, symmetrical, down breakouts

Wedges, falling, up breakouts

Wedges, falling, down breakouts (tied with dome shape)

No Performance Difference

The following chart patterns show no volume shape preference. That means performance is the same across all volume shapes.

Chart Patterns in a bull market

Broadening wedge, ascending, down breakouts

Bump-and-run reversal tops

Cup with handle, inverted

Scallops, ascending and inverted

Scallops, descending and inverted