As of 09/29/2022
  Indus: 29,226 -458.13 -1.5%  
  Trans: 12,258 -199.22 -1.6%  
  Utils: 906 -38.84 -4.1%  
  Nasdaq: 10,738 -314.13 -2.8%  
  S&P 500: 3,640 -78.57 -2.1%  
YTD
-19.6%  
-25.6%  
-7.6%  
-31.4%  
-23.6%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/29/2022
  Indus: 29,226 -458.13 -1.5%  
  Trans: 12,258 -199.22 -1.6%  
  Utils: 906 -38.84 -4.1%  
  Nasdaq: 10,738 -314.13 -2.8%  
  S&P 500: 3,640 -78.57 -2.1%  
YTD
-19.6%  
-25.6%  
-7.6%  
-31.4%  
-23.6%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski's RABFD Quiz

Released 4/23/2019.

RABFD: Quiz

Below is a seven-slide quiz to test your ability to identify a right-angled and descending broadening formation (RABFD, for simplicity) and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.

 

1 / 7
chart pattern
This is a right-angled and descending broadening formation. The top is horizontal or nearly so, with at least 2 trendline touches. The bottom trendline slopes downward and diverges from the top trendline. Look for at least 2 touches of this trendline, too, but one trendline should have 3 or more touches. Price should cross the pattern from side to side, filling the space with movement (little white space). A rising volume trend (such as shown) results in the best post-breakout performance (on average).
2 / 7
chart pattern
Find as many descending broadening formations as you can. For help, click here.
3 / 7
chart pattern
This is the pattern I found. Point A is close enough to the top trendline to be called a touch.
4 / 7
chart pattern
Try again! Find as many descending broadening formations as you can.
5 / 7
chart pattern
Here's the broadening pattern. The spike at A is a partial rise, suggesting an immediate downward breakout. Partial rises work half the time.
6 / 7
chart pattern
This chart shows price did close below the line at D, but rebounded to form a more robust partial rise (B). Price has dropped and closed below the green line at C, staging a downward breakout. Do you buy a new long position, hold an existing position, or sell short a new position? If price drops, where do you think it'll stop? I show 4 possible support areas, EFGH, along with the associated price (E, for example is at $23, H is at $19).
7 / 7
chart pattern
Price bottomed, matching line G at 20. Notice the stock bottomed at round number 20, a common area of support (10, 20, 30, and so on).

See Also

 
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