As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20
As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20

Bulkowski's Lam Research Trading Quiz

 

Released 10/1/2020.

LRCX: Quiz

Below is a slider quiz to test your trading ability, based on an actual trade I made. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 6
chart pattern
What chart patterns can you find? Look for the following: 2 symmetrical triangles, descending triangle, double top, 3 double bottoms, triple bottom, head-and-shoulders top.
Answers are on the next slide.
2 / 6
chart pattern

Price has broken out upward from the descending triangle and completed a throwback.

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
The answers begin on the next slide.
3 / 6
chart pattern

Question 1 (buy?): Yes. Here's my notebook. "Date: 9/21/04, filled at: 23.10. Stop: 19.64, just below triple bottom low, or 15% down. Ouch! I am willing to sacrifice this drawdown to get to the old high of 33. Upside target: 33, the January 2004 high. Future S&P direction (guess): Up. Nasdaq is moving above its 200 day moving average in a tight flag. I expect price to reach the measure rule target for the flag.

This chart shows the 200-day exponential moving average in the Nasdaq composite and the flag I mentioned above.

The next slide shows the stock on the weekly chart.
4 / 6
chart pattern

Buy reason: On the weekly chart (shown), this is at the bottom of a rounding turn. Fundamentals are good when compared to others in the semiconductor capital equipment business. A triple bottom (shown) and pipe bottom (P) round out the bottom of the turn. This may take 9 months to return to the old high, but it looks very promising. Expect price to blip up then return to the rounding bottom base as happens in some rounding turns. When it gets over 30, be prepared to sell. I feel confident about this trade.

Here's a picture of the rounding turn on the weekly scale ("Buy reason: On the weekly chart, this is at the bottom of a rounding turn.").

See next page for another exciting chart, this one includes stops.
5 / 6
chart pattern

More notebook: "11/17/04. Stop raised to 24.83. 12/6/04 Stop raised to 25.47. 12/16/04 Stop raised to 27.13"

The horizontal red lines show the date and price where they were placed. The round circle is the last stop placed on the last bar on the chart, at just over 27.

The next slide shows how the story ends
6 / 6
chart pattern
"Date: 1/4/2005. Filled at: 27.131. Sell reason: hit stop."

As the above notebook entry says, price dropped and hit my stop, taking me out before I thought the time was right. Nevertheless, I made 17%. Price eventually climbed to 33, hitting it in 10/13/2005, nine months after I sold and after reaching a low of 24.24.

The end.

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

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