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 Apache Trading Quiz

 

Released 7/6/2020.

Apache: 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 / 4
chart pattern
What chart patterns can you find? Look for the following: right-angled descending broadening wedge (RABFD), double top, scallop, measured move, and a flag.
Answers are on the next slide.
2 / 4
chart pattern

B and Eve is an Eve & Eve double top. The measured move is ABCD and it follows the same stair-step pattern as the prior up moves. That's a warning as a pattern so blatant tends to break apart just after you buy in.

Price has gapped upward out of the flag and consolidated.

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 appear on the next slide.
3 / 4
chart pattern
Question 1: Buy? Yes
Question 2: Target price? 74.29.
Question 3: Stop price? 63.71.

Here's my notebook entry for the buy.

"Date: 11 July 2005. Trade time: market open. Filled at: 69.08. Stop: 63.71, an 8% loss. Upside target: 74.29, using MMU [measured move up] approach from high (67.99) - low (51.52) = 16.47 x 64% percentage meeting price target = 10.54 added to flag low of 63.75. Future S&P direction (guess): Up.
Buy reason: Flag breakout, a measured move up type trade. Oil continues to be strong and hurricane passed the gulf where the co has ops."
Question: Do you sell, hold, buy more of the stock? Answers on the next page.
4 / 4
chart pattern

Here's my notebook entry:

"Date: 21 July 2005. Trade time: market open. Filled at: 67.75.

"Sell reason: This looks to be making a head-and-shoulders top. Other stocks in the industry are showing weakness by having bearish patterns. It's time to try to limit the loss and get out. Since the price made a higher high by 16 cents today, I just added that to today's price and placed a limit order, day, to sell at 67.56. My guess is that the stock will make a lower low tomorrow, signaling a downward breakout from the H&S [head-and-shoulders] top. That would not be good...This stock hasn't performed as I expected almost from day one. It's time to get out. The stock was upgraded by a broker and it sold at the open."

What I should have done is gauge where the stock was headed and THEN sold. The gap up on strength may have given me enough backbone to stay in the trade longer.

But that's the danger. If I held on when I thought I should sell and either made more money or lost less, I would be more prone to NOT sell the next time, hoping the stock would move even higher. That's a recipe for disaster. I guess what I'm saying is that the stock needed to be sold but not by using a market order on the open. Trade it intraday day and sell instead of at the open.

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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