How to find non existent patterns in the charts

• Look at this chart of JRJC very closely.
• What pattern do you see?

• This is the same chart do you recognise the period before EP.
• Does it remotely look like what it looked pre EP ?

• When a stock makes a big move the perception distorts the earlier chart.
• That happens because the chart gets compressed and the tall move above makes the earlier move look less volatile.
• It looks like a breakout from flat base.
• This is one of the problem with many of the easily recognisable patterns in chart "after it has made a big move".
• The cute cup with handle does not look so cute when it is actually getting formed.
• The subsequent perception distortion makes it look proper cup with handle.
• In 2006 Stocks and Commodities Magazine had a article titled " The Bowl Pattern Breakout".
• It showed stocks like NTRI. GGR, PRLS, FPP, VPHM, GMXr TIE.
• All of them had made big moves and were EP kind stocks.
• The author said if you look at the chart, you could have found this chart using a bowl pattern.
• The problem is if you look at the chart before breakout, they did not look like a bowl.
• The subsequent big move made the earlier pattern look like bowl.
• So in hindsight it looked like bowl pattern.
• The article had everyone excited and every one was trying to find scan for "The Bowl Pattern b/o"
• Any stock which makes 300% plus move after a breakout, will have its previous chart pattern looking very neat and compact.
• But when the actual breakout happened it did not look that way.