As of 10/03/2022
  Indus: 29,491 +765.38 +2.7%  
  Trans: 12,465 +406.70 +3.4%  
  Utils: 915 +26.32 +3.0%  
  Nasdaq: 10,815 +239.81 +2.3%  
  S&P 500: 3,678 +92.81 +2.6%  
YTD
-18.8%  
-24.4%  
-6.7%  
-30.9%  
-22.8%  
  Targets    Overview: 09/15/2022  
  Up arrow30,800 or 27,500 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow950 or 850 by 10/15/2022
  Up arrow11,500 or 9,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 10/3/22
As of 10/03/2022
  Indus: 29,491 +765.38 +2.7%  
  Trans: 12,465 +406.70 +3.4%  
  Utils: 915 +26.32 +3.0%  
  Nasdaq: 10,815 +239.81 +2.3%  
  S&P 500: 3,678 +92.81 +2.6%  
YTD
-18.8%  
-24.4%  
-6.7%  
-30.9%  
-22.8%  
  Targets    Overview: 09/15/2022  
  Up arrow30,800 or 27,500 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow950 or 850 by 10/15/2022
  Up arrow11,500 or 9,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 10/3/22

Bulkowski's Tribune (TRB) Quiz

Released 8/8/2022.

TRB: Quiz

Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.


1 / 5
chart pattern

Look for the following chart patterns (If you find others, great!): 2 broadening tops, descending triangle, symmetrical triangle, right-angled and descending broadening formation, and an inverted and ascending scallop.

The answers are on the next slide.
2 / 5
chart pattern

I show the descending triangle in green because Patternz (my computer program) loves it but I don’t (it looks to cut off a rounding turn). Price has closed above the broadening formation on the right.

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 / 5

chart pattern

Answer 1 (buy?): Buy. The partial decline correctly predicts an upward breakout 75% of the time in a bull market.

Answer 2 (target?): Use the measure rule, which is the pattern height added to the breakout price. The top trendline is at 47.99 and the low is at 44.28 for a height of 3.71. Add this to the price of the top trendline and the target becomes 51.70. Price reaches the target 65% of the time. Thus, consider multiplying the height by 65% before adding it to the top trendline price. That gives a closer target of 50.40.

Answer 3 (stop?): 2x Volatility is $1.24, so a stop placed 3% down or 46.63 would keep you away from being stopped out on normal volatility. That’s a bit close for me, so I’d place it below the minor low at A, shown in the chart above, 45.55.

More on the next slide.
4 / 5
chart pattern

Price moved up then consolidated in a rectangle top.

Question: Why should you sell the stock now, or should you?

The answer appears on the next slide.
5 / 5
chart pattern

A complex head-and-shoulders top forms. When price closes below the neckline, a line drawn connecting the armpits (the valleys between the shoulders and heads), it signals a sale. Price drops from a breakout price of 48.84 to a recent low of 28.40 (occurred on 2/1/2006 not shown).

Did price reach either the near (50.40) or farther away (51.70) targets? Yes. The first came as price exited the rectangle, moving up, and the second was reached when price formed the left shoulder.

The End.

See Also

Top of page

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer