As of 04/21/2021
  Indus: 34,137 +316.01 +0.9%  
  Trans: 15,040 +145.39 +1.0%  
  Utils: 927 -6.07 -0.7%  
  Nasdaq: 13,950 +163.95 +1.2%  
  S&P 500: 4,173 +38.48 +0.9%  
YTD
 +11.5%  
 +20.3%  
 +7.2%  
 +8.2%  
 +11.1%  
  Targets    Overview: 04/15/2021  
  Up arrow34,800 or 32,900 by 05/01/2021
  Up arrow15,200 or 14,000 by 05/01/2021
  Up arrow950 or 885 by 05/01/2021
  Up arrow15,000 or 12,900 by 05/01/2021
  Up arrow4,400 or 3,900 by 05/01/2021
CPI (updated daily): Arrows on 3/25/21
As of 04/21/2021
  Indus: 34,137 +316.01 +0.9%  
  Trans: 15,040 +145.39 +1.0%  
  Utils: 927 -6.07 -0.7%  
  Nasdaq: 13,950 +163.95 +1.2%  
  S&P 500: 4,173 +38.48 +0.9%  
YTD
 +11.5%  
 +20.3%  
 +7.2%  
 +8.2%  
 +11.1%  
  Targets    Overview: 04/15/2021  
  Up arrow34,800 or 32,900 by 05/01/2021
  Up arrow15,200 or 14,000 by 05/01/2021
  Up arrow950 or 885 by 05/01/2021
  Up arrow15,000 or 12,900 by 05/01/2021
  Up arrow4,400 or 3,900 by 05/01/2021
CPI (updated daily): Arrows on 3/25/21

Bulkowski's York Water Trading Quiz

 

Released 12/17/2020.

YORW: 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 / 5
chart pattern
What chart patterns can you find? Look for the following: 2 ascending triangles, 2 symmetrical triangles, head-and-shoulders bottom, Big M, Eve & Adam double top.
Answers are on the next slide.
2 / 5
chart pattern

The symmetrical triangle has an upward breakout. Patterns are not easy to find in this stock because price seems to be quite volatile (thinly traded with wide trading ranges intraday).

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 / 5
chart pattern

Answer 1 (buy?): Buy because of the upward breakout.

Answer 2 (target?): Since there is little overhead resistance, use the measure rule. The height of the triangle is 18.85 - 15.65 = 3.20. Add this to the breakout price of 17.75 for a target of 20.95. Price reaches the target 58% of the time, so you can multiply the height by 58% to get a more conservative target.

Answer 3 (stop?): I think a good stop would be below the pattern as I have shown at point A. You might want to run volatility on it to make sure it's not too close, but there's a good measure of support above the point and I think it will work well.

Price has climbed since the breakout. What do you do now? To answer that, look for additional chart patterns. That will determine if you should make any changes to your position.

What patterns can you find after the throwback?

More on the next slide.
4 / 5
chart pattern

Price has thrown back to the ascending triangle top. Do you hold on, buy more, or sell?

More on the next slide.
5 / 5
chart pattern

It's easy to determine a sell point in hindsight, but not in real time. I extended the two trendlines from the ascending triangle forward. You might want to sell if price closes below the intersection of the two lines (near the green sell line). Even a close below the magenta sell line, setup as a long trendline from the October lows, would work well.

Price touched 21.04, just pennies above the 20.95 target. If you had placed a sell order at that price, you would have traded this one perfectly!

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 Trading Classic Chart Patterns

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