As of 01/20/2021
  Indus: 31,188 +257.86 +0.8%  
  Trans: 13,126 +225.85 +1.8%  
  Utils: 865 +7.27 +0.8%  
  Nasdaq: 13,457 +260.07 +2.0%  
  S&P 500: 3,852 +52.94 +1.4%  
YTD
 +1.9%  
 +4.9%  
 +0.0%  
 +4.4%  
 +2.6%  
  Targets    Overview: 01/13/2021  
  Up arrow32,000 or 29,600 by 02/01/2021
  Up arrow13,500 or 12,300 by 02/01/2021
  Up arrow890 or 800 by 02/01/2021
  Up arrow13,500 or 12,400 by 02/01/2021
  Up arrow3,900 or 3,625 by 02/01/2021
CPI (updated daily): Arrows on 11/2/20
As of 01/20/2021
  Indus: 31,188 +257.86 +0.8%  
  Trans: 13,126 +225.85 +1.8%  
  Utils: 865 +7.27 +0.8%  
  Nasdaq: 13,457 +260.07 +2.0%  
  S&P 500: 3,852 +52.94 +1.4%  
YTD
 +1.9%  
 +4.9%  
 +0.0%  
 +4.4%  
 +2.6%  
  Targets    Overview: 01/13/2021  
  Up arrow32,000 or 29,600 by 02/01/2021
  Up arrow13,500 or 12,300 by 02/01/2021
  Up arrow890 or 800 by 02/01/2021
  Up arrow13,500 or 12,400 by 02/01/2021
  Up arrow3,900 or 3,625 by 02/01/2021
CPI (updated daily): Arrows on 11/2/20

Bulkowski's Volt Information Sciences Trading Quiz

 

Released 12/11/2020.

VOL: Quiz

Below is a slider quiz to test your trading ability. 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: ascending triangle, symmetrical triangle, 2 rising wedges, head-and-shoulders top, right-angled and ascending broadening formation, flag.
Answers are on the next slide.
2 / 6
chart pattern

Earnings were released on the 22nd and the next day price made a large move upward then rounded over as it consolidated its gains.

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?
My answers appear on the next slide.
3 / 6
chart pattern

Answer 1: Buy. This is an earnings flag trade although a "flag" is not really present. That's ok. Flags and pennants are rare after a large move up from an earnings announcement. Just look for a consolidation pattern.

Answer 2, 3: "1/12/04. I bought at market. This is an earnings flag trade coupled with a symmetrical triangle support. Price was up $0.25 to 22.60 on 4k volume -- thin, but I believe the stock is breaking out upward from the small flag at the peak of the up trend on 12/30/03. The order filled at 22.60. Upside is 29% rise from top of the earnings flag, or 30.37. That sounds like wishful thinking, but I have no other upside estimates. Downside is triangle apex at 20.84. That would be an 8% loss. The symmetrical triangle has met the measure rule already. I bought this as soon as funds were available."

The target price computation uses the low on the announcement day at 20.25 and the flag's high at 23.55 for a height of 3.30. Added to the flag low of 22.10 gives a target of 25.40. I don't know where the 29% I mention in the above notebook entry comes from...

Price has gone nowhere since purchase. Question: What do you do now, if anything?

The following slide shows the next part of the trade.
4 / 6
chart pattern

Answer: "1/21/04. Stop at 20.57." The horizontal red line shows the stop level, the vertical line denotes the date placed.

The stock has eased higher in an unsteady manner as if it's struggling to find its way. Question: What do you do now, if anything?

My answer appears on the next slide.
5 / 6
chart pattern

Answer: "3/8/04 Stop placed at 21.91."

Price made a large move down. Question: What, if anything, do you do now?

My answer appears on the next slide.
6 / 6
chart pattern

Answer: "3/22/04 After the market closed, I put in an order to sell my holdings at the market open. This has broken out of an ascending triangle. With the market heading down, this situation can only get worse. Time to take a small loss."

I sold at the market open and lost just over 1%. What would you have done differently?

The End.

See Also

 
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My novels:  Bumper's Story Head's Law

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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