As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22
As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22

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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