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 Expeditor Int'l Trading Quiz

 

Released 9/29/2020.

EXPD: 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 / 9
chart pattern
What chart patterns can you find? Look for the following: Big M, 2 double tops, broadening top, triple bottom, and pennant (or flag).
Answers are on the next slide.
2 / 9
chart pattern

The earnings flag shown on the far right isn't a flag at all but a pennant. It happens after a good earnings announcement, like that shown in red (when price gapped up). Price has broken out upward from the pennant.

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?
Answers are on the next slide.
3 / 9
chart pattern

Answer 1: Earnings flags are the best performing event pattern. Buy. Price must make a large intraday price swing or gap higher and then consolidate.

Answers 2, 3: From my trading notebook. "Filled at: 43.989. Stop: 40.03, for a potential loss of 9%. Upside target: 46 as per measured move up from 36 to 42, then 40 projected upward. Mood (will trade work? Bought too soon?): pissed that GI trade was stopped out but confident of this one. S&P direction over pattern lifetime: Downward for last 1.5 months. Future market direction (guess): Up. It's finding support at the last recent minor low. Market is nervous over oil price and inflation, rising interest rates looming.

"Buy reason: Earnings flag and stock is moving higher as market is going down. Nice flat base at 38 and 41."

I show the measured move up in red on the above chart. In theory, the second leg is supposed to copy the move of the first leg.

The S&P chart appears on the next slide.
4 / 9
chart pattern

The red line shows the downward price trend I spoke of. The green lines show underlying support. The top green line is just below the 38% Fibonacci retrace of the move from A to B, suggesting price might reverse and move up, as I wrote in my notebook.

Oil prices appear on the next slide.
5 / 9
chart pattern

Here's the oil chart. At the time I bought, you can see that oil was on a steady climb since the September low.

Flat base shown on the next slide.
6 / 9
chart pattern

This is the flat base at 38 and 41 my notebook refers to. It's not exactly flat, is it? Notice the dip at the end of the rectangle (circled). I've noticed that these types of dips occur before a nice move higher.

The trade unfolds on the next slide.
7 / 9
chart pattern

This is what happened to the stock over the coming days. The red circles show the stop locations that my notebook entry details.

"5/26/04: Stop raised to 42.37. 6/2/04: Stop raised to 43.73 (and so on)." Most of the circles correspond to new highs in the stock. As price climbed, you can see that the circles became bunched. I grew more concerned the higher price climbed.

Question: Is it time to sell or hold on for additional gains?

I show my answer on the next slide.
8 / 9
chart pattern

Here's my notebook entry for the exit. "Date: 7/21/04. Filled at: 49.022. Mood (sell too soon?): Yes, at least intraday as price rebounded after I sold. In the short term, I see market weakness and weakness in this stock. It is struggling to get above 50 and stay there. I expect another decline then another try for the top.

Sell reason: The market is up 88 points and this is down 82 cents. All the other stocks in my portfolio are up today. That signals a trend change. The rate of change (ROC) oscillator has been trending down for months now (since April), diverging from price and I see momentum lessening. It may be that I want to protect my profits after two recent losses. Earnings are due in August 6.

Yeah! I just logged in and the stock closed 2.64 lower! I got out just in time and the DJIA [Dow Industrials] was down over 100."

The next slide shows the rate of change oscillator.
9 / 9
chart pattern

I made over 11% on the trade. Notice that even though the indicator signaled divergence (lower highs on the indicator but higher highs on the stock), I bought and made money.

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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