THE HAndbook oF TEcHnIcAl AnAlysIsFigure 15.36 A Basic Three‐Box Reversal Bearish Catapult.
Figure 15.37 A Basic Three‐Box Reversal Bearish Catapult on a Point‐and‐Figure
Chart of Oclaro Inc.
Courtesy of Stockcharts.com
as the formation progresses. This expansion triggers successive double and occa-
sionally even triple top and bottom buy and sell signals, respectively. The market
participant potentially experiences numerous bear and bull traps when trading
breakouts with this formation. See Figure 15.38 for an illustration of a broaden-
ing formation.