As of 07/19/2019
  Industrials: 27,154 -68.77 -0.3%  
  Transports: 10,604 +66.69 +0.6%  
  Utilities: 820 -11.25 -1.4%  
  Nasdaq: 8,146 -60.75 -0.7%  
  S&P 500: 2,977 -18.50 -0.6%  
YTD
 +16.4%  
 +15.6%  
 +15.0%  
 +22.8%  
 +18.7%  
  Tom's Targets    Overview: 07/12/2019  
  Down arrow26,500 or 28,000 by 08/01/2019
  Down arrow10,000 or 11,000 by 08/01/2019
  Up arrow850 or 800 by 08/01/2019
  Down arrow7,950 or 8,500 by 08/01/2019
  Down arrow2,900 or 3,075 by 08/01/2019
As of 07/19/2019
  Industrials: 27,154 -68.77 -0.3%  
  Transports: 10,604 +66.69 +0.6%  
  Utilities: 820 -11.25 -1.4%  
  Nasdaq: 8,146 -60.75 -0.7%  
  S&P 500: 2,977 -18.50 -0.6%  
YTD
 +16.4%  
 +15.6%  
 +15.0%  
 +22.8%  
 +18.7%  
  Tom's Targets    Overview: 07/12/2019  
  Down arrow26,500 or 28,000 by 08/01/2019
  Down arrow10,000 or 11,000 by 08/01/2019
  Up arrow850 or 800 by 08/01/2019
  Down arrow7,950 or 8,500 by 08/01/2019
  Down arrow2,900 or 3,075 by 08/01/2019

Bulkowski's RABFD Quiz

 

Released 4/23/2019.

RABFD: Quiz

Below is a seven-slide quiz to test your ability to identify a right-angled and descending broadening formation (RABFD, for simplicity) and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.

 

1 / 7
chart pattern
This is a right-angled and descending broadening formation. The top is horizontal or nearly so, with at least 2 trendline touches. The bottom trendline slopes downward and diverges from the top trendline. Look for at least 2 touches of this trendline, too, but one trendline should have 3 or more touches. Price should cross the pattern from side to side, filling the space with movement (little white space). A rising volume trend (such as shown) results in the best post-breakout performance (on average).
2 / 7
chart pattern
Find as many descending broadening formations as you can. For help, click here.
3 / 7
chart pattern
This is the pattern I found. Point A is close enough to the top trendline to be called a touch.
4 / 7
chart pattern
Try again! Find as many descending broadening formations as you can.
5 / 7
chart pattern
Here's the broadening pattern. The spike at A is a partial rise, suggesting an immediate downward breakout. Partial rises work half the time.
6 / 7
chart pattern
This chart shows price did close below the line at D, but rebounded to form a more robust partial rise (B). Price has dropped and closed below the green line at C, staging a downward breakout. Do you buy a new long position, hold an existing position, or sell short a new position? If price drops, where do you think it'll stop? I show 4 possible support areas, EFGH, along with the associated price (E, for example is at $23, H is at $19).
7 / 7
chart pattern
Price bottomed, matching line G at 20. Notice the stock bottomed at round number 20, a common area of support (10, 20, 30, and so on).

See Also

 
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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns Bumper's Story Head's Law
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