Ascending Scallop is a bullish continuation pattern that appears after an upward move, showing a brief pullback before the uptrend continues.
What Is the Ascending Scallop Chart Pattern?
The ascending scallop is a bullish continuation pattern that shows up inside an existing uptrend. It usually looks like a rounded pullback that turns into a sharp “J” launch higher. Think of it as the market taking a breather, shaking out weak hands, then ripping back in the trend direction.
What Are the Key Features of an Ascending Scallop Pattern?
Shows up in established uptrends, so you’re hunting continuation—not a bottom call
Builds a rounded, bowl-like pullback instead of a sharp V
Ends with a “J” hook breakout as price clears the prior swing high
Usually plays out in three parts: fade off the high, round out the base, then breakout and go
What separates a scallop from a typical flag or pennant is the asymmetry. The base tends to widen and round, then price accelerates hard once it reclaims the key level. That “J” burst is the whole point—momentum tends to come back fast once the pattern completes.
Ascending Scallop Pattern Performance: Win Rate, Rally Size, and Failures
Data cited by Fidelity and PatternSite shows the pattern can perform well in bull conditions:
Pattern Metric | Bull Market Performance |
|---|---|
Average Rally | 37-42% |
Success Rate (10%+ moves) | 84% |
Breakeven Failure Rate | 11-16% |
Throwback Occurrence | 64-68% |
The big takeaway is the hit rate on meaningful follow-through (10%+ moves). Also note the throwback frequency—a retest is common, so if you can’t sit through a pullback to the breakout level, this pattern will frustrate you.
Why Do Traders Use the Scallop Pattern in Technical Analysis?
The scallop stays relevant because it gives you clean structure: a defined breakout line, a logical stop area, and a repeatable target method. If you trade systematic setups across equities, FX, or crypto, it’s one of those patterns that’s easy to standardize—especially when you pair it with trend filters and volume.
How Do You Trade the Ascending Scallop Pattern?
The scallop is easy to trade if you treat it like a rules-based setup: define the trigger, define the invalidation, then size the position so one bad trade doesn’t matter. The edge comes from repetition and clean execution, not from trying to nail every tick.
Ascending Scallop Entries: Breakout, Throwback, and Aggressive Options
Primary entry: buy the close above Point B with volume confirmation
Conservative entry: wait for the throwback/retest of Point B after the breakout
Aggressive entry: take it near Point C if the tape is strong and the trend is clean
Pullback/second-chance entry: after a failed first pop, re-enter when it reclaims Point B with strength
How Do You Set Targets With the Measured Move Rule?
The standard target is the measure move: take the distance from Point A to Point B, then project that distance up from the breakout area. It’s not magic, but it gives you a consistent way to plan exits. PatternSite data suggests about 62% of these hit the measured target in bull markets, which is good enough to build a repeatable playbook if your risk is controlled.
Where Should Your Stop Loss Go for an Ascending Scallop?
Stops usually sit below Point C. If the market is wild (small-cap stock, meme name, thin altcoin), you may need more room, but the tradeoff is smaller size. Some traders use a wider stop under Point A, but then the setup needs a bigger target to keep the R:R sensible.
Exit Strategy | Target Level | Success Rate |
|---|---|---|
Measure Rule (Full Height) | Point B + (B-A) | 62% |
Conservative (50% Height) | Point B + 0.5(B-A) | Higher |
Resistance Levels | Next major resistance | Varies |
Size the trade off the stop distance, not off vibes. A simple rule that works: risk 1–2% of account equity per trade. That keeps you in the game when a breakout fails or a throwback turns into a full breakdown.
When the tape is trending hard, you can let runners extend past the measured move. In chop, taking profits earlier—like the 50% height target or the next resistance shelf—usually pays.
How Do You Identify and Confirm an Ascending Scallop?
What Tools Help Spot an Ascending Scallop Pattern?
You can spot scallops by eye with enough screen time, but scanners help a lot—especially if you’re hunting across 500 stocks, major FX pairs, and a watchlist of altcoins. The best workflow is usually: scanner flags candidates, then you manually grade the structure, trend context, and volume quality.
Ascending Scallop Confirmation Checklist (Breakout, Volume, Trend)
If you want to keep it tight and tradable, this is the checklist that matters:
Breakout: price closes cleanly above Point B (not just a wick)
Volume: expansion on the breakout, or at least clear participation relative to the base
Trend: it’s happening in an uptrend, not in the middle of a chop box
Depth: retrace stays roughly in the 38–70% zone
Time: it develops over multiple candles/bars, not a one-day wonder
What Candlestick Signals Confirm Point C Support?
Point C is often where the tape gives you the best clue. Strong bullish candles near C—tight wicks, solid closes, maybe a clear rejection candle—usually mean buyers are stepping in where they should. If C is all long red candles and sloppy rebounds, you’re forcing it.
"Inverted ascending scallops in bull markets achieve an average rally of 37%, with 72% reaching 15% gains when properly identified and confirmed with volume analysis." , Thomas Bulkowski, Pattern Analysis Studies
What Are the Most Common Ascending Scallop Trading Mistakes?
The most common way traders get chopped up is treating a half-formed scallop like a finished setup. Buying before the Point B break is basically guessing. Another big one is ignoring volume and getting suckered into a thin breakout that immediately fails.
Also watch overhead supply. Even if the scallop breaks, a major weekly resistance shelf above it can cap the move fast. And don’t confuse random mid-pattern swings with the real Point C—C matters because it defines the higher-low support that makes the pattern bullish.
How Does an Ascending Scallop Form?
Ascending Scallop Structure: Points A, B, and C Explained
The pattern is basically a three-point story. Point A is the low of the pullback. Point B is the consolidation high (the ceiling you need to break). Point C is the higher low that forms after the retrace—this is the “line in the sand” that tells you buyers are defending higher ground.
What Happens During the Scallop Consolidation Phase?
In the middle of the scallop, price tightens up and churns. Volatility compresses, candles overlap, and the tape feels indecisive. That’s normal—this is where supply gets worked through while buyers keep absorbing under resistance at Point B.
How Deep Should the Pullback Be in an Ascending Scallop?
The retrace is where the pattern either gets validated or falls apart. 38–62% is the sweet spot, with ~50% showing up a lot in real charts. Once you start pushing past 70%, the setup gets suspect because you’re no longer seeing “controlled pullback” behavior.
The key is Point C holding as a higher low. If C undercuts too deep or turns into a messy multi-swing breakdown, you’re not looking at a clean scallop anymore—you’re looking at a potential trend change or a bigger consolidation.
How Does Volume Behave in an Ascending Scallop Pattern?
Consolidation: volume usually fades as the market pauses
Retracement: volume is often moderate—enough selling to pull it back, not enough to break structure
Breakout: volume should expand as price clears Point B
U-shaped volume: research discussed in scallop pattern studies highlights this as a common “health signal”
How Do You Confirm the Breakout Above Point B?
The trade trigger is straightforward: a breakout above Point B. That’s your confirmation the market is ready to continue. Most traders will anchor risk off Point C (or slightly below it), because if price loses that higher-low support, the whole continuation thesis weakens fast.
How to Combine the Scallop Pattern With Indicators and Confluence
The scallop works best with confluence. On its own it’s a decent continuation setup, but it gets stronger when trend, momentum, and levels all agree. A clean scallop above key moving averages with a controlled Fibonacci pullback is a very different trade than a scallop forming under a major weekly supply zone.
Best Indicators to Confirm an Ascending Scallop Setup
Spot the scallop and mark A, B, and C clearly
Confirm trend with moving averages (often price above the 50-day and 200-day)
Check RSI behavior—ideally it holds firm during the pullback rather than collapsing
Use Fibonacci to validate the retrace (38.2–61.8% is the common zone)
Grade the volume profile through the base and on the breakout
Align it with market/sector tape (SPY/QQQ trend, sector ETFs, BTC dominance, etc.)
Ascending Scallop Limitations: What the Stats Really Say
This isn’t the holy grail. Bulkowski ranks it mid-pack (20 out of 39) in his pattern research, and the breakeven failure rate is still 11%+. The edge comes from only taking clean versions, demanding confirmation, and keeping losses small when the breakout doesn’t stick.
Can AI Scanners Detect the Scallop Pattern Accurately?
AI-driven scanners have gotten better, and models built with TensorFlow and PyTorch can flag scallops across timeframes fast. Cloud stacks like AWS, Google Cloud, and Azure make large-scale scanning cheap and scalable. Still, the machine can’t fully judge context—liquidity, overhead supply, event risk, and whether the “scallop” is actually just random chop.
The best traders still do the boring part: backtest, screenshot setups, and journal execution. That’s how you get consistent with this pattern.
Ascending Scallop Psychology: What Price Action Is Signaling
The scallop is basically sentiment cycling. The uptrend is confidence. The consolidation is hesitation. The retrace is fear and profit-taking. Then buyers step in at the higher low, and once the market clears Point B, FOMO takes over and the move accelerates.
Buying pressure isn’t constant through the pattern. It cools off during consolidation, gets hit during the pullback, then shows up again at Point C. That’s why the higher low matters—it’s the market telling you sellers couldn’t do real damage.
Momentum-wise, this is usually a pause, not a reversal. Oscillators reset, weak positions get shaken out, then the trend has room to push again once the breakout hits.
How Traders React During Each Scallop Phase
Early longs get uneasy during consolidation and start tightening stops
Profit-taking during the retrace adds sell pressure and creates the “bowl”
Dip buyers step in at the higher low and rebuild bids
Breakout triggers FOMO and forces late shorts to cover
Throwbacks (64–68%) test conviction right after the breakout
If you expect the throwback, you’re less likely to panic-sell the retest. If you don’t, you’ll exit the trade right where the market is trying to confirm the breakout.
Where Does the Scallop Pattern Work Best (Stocks, Forex, Crypto)?
Scallops show up everywhere—stocks, FX, crypto—because they’re just a visual version of “trend, pause, continuation.” The difference is how clean the structure is and how noisy the volume data gets.
How to Trade the Scallop Pattern in Stocks
In stocks, scallops can show up around earnings runs, sector rotations, and strong institutional flows. Daily and weekly charts tend to be cleaner than low timeframes. As trends mature, the pattern often gets tighter and steeper, so you may need quicker execution and tighter profit management—especially in names with crowded positioning.
How Does the Scallop Pattern Work in Forex and Crypto?
In FX, the 4H and daily charts are common sweet spots because liquidity is steady and moves are less “gappy.” Examples like GBP/USD targeting 1.2950 show how the pattern can map cleanly onto major pairs.
Crypto is a different animal. The structure can still be there, but volatility distorts the bowl and the “J” can turn into a whip. Volume matters more, and it’s messier because it’s split across exchanges—Binance, Coinbase, OKX, Bybit—so you want to sanity-check volume signals across your data source.
How Does the Ascending Scallop Perform in Bull vs Bear Markets?
Bull markets: 37–42% average rally; 84% success rate for 10%+ moves
Bear markets: ~26% average rally; reliability drops
Ranging markets: scallops “form,” but breakouts fail more often
High volatility: structure gets warped, so stops usually need to be wider (and size smaller)
Why Do Ascending Scallops Fail?
Most failures come from the same few mistakes: entering early, ignoring volume, trading it against the bigger trend, or letting the retrace blow past the 70% invalidation area. Also, since throwbacks are common, impatience is a real cost—many traders sell the retest and watch it run without them.
Ascending Scallop Pattern Summary
The ascending scallop is a bullish continuation setup that shows a rounded pullback and a sharp “J” breakout in an uptrend. When it’s clean, it gives you a simple plan: breakout over Point B, risk defined under Point C, and targets mapped with the measure move or nearby resistance.
It works because it matches how trends behave in real life—pause, pull back, then continue—especially in bull markets where the stats are strongest (37–42% average rallies and 84% success on 10%+ moves, per the cited studies).
Just don’t treat it like a standalone signal. The money is in confirmation, context, and risk control—because even a good-looking scallop can fail if volume is weak, the retrace is too deep, or you’re breaking into heavy supply.
How Do You Turn Ascending Scallop Setups Into Repeatable Results?
The ascending scallop is a structured pattern, but consistency comes from tracking how you execute it: whether you wait for the Point B close, how you handle common throwbacks, and if your stops under Point C match the volatility of the instrument. A trading journal helps you review each scallop trade against the same checklist (trend context, volume behavior, retrace depth, and entry type), so you can separate clean breakouts from early entries or thin-volume failures. Over time, logging screenshots, rationale, and outcomes makes it easier to spot recurring leaks—like taking scallops into overhead supply or cutting winners before the measured move plays out. If you want a structured way to monitor PnL, risk, and setup-level stats, using Rizetrade trading journal analytics and performance tracking dashboard can support more objective post-trade analysis without changing the core strategy.