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% Overview: 05/15/2022     33,500 or 30,500 by 06/01/2022   14,700 or 12,400 by 06/01/2022   1,050 or 940 by 06/01/2022   12,800 or 11,000 by 06/01/2022   4,150 or 3,700 by 06/01/2022 CPI (updated daily): 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% Overview: 05/15/2022     33,500 or 30,500 by 06/01/2022   14,700 or 12,400 by 06/01/2022   1,050 or 940 by 06/01/2022   12,800 or 11,000 by 06/01/2022   4,150 or 3,700 by 06/01/2022 CPI (updated daily): on 4/21/22

Released 12/17/2020.

## YHOO: 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.

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What chart patterns can you find? Look for the following: rectangle top, descending broadening wedge, falling wedge, triple bottom if you combine the first two bottoms - it's also a Big W, ascending scallop, and simple ABC correction.
Answers are on the next slide.
2 / 3

The simple ABC correction is the mystery pattern. Think of it as a measured move down nested inside a measured move up. If you're not sure what all of that means then check my website. You won't find the ABC pattern in my Encyclopedia...

Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
My answers appear on the next slide.
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Answer 2 (target?): Let's assume price breaks out upward. Many will reverse at 4 and form a double top, so keep that in mind. You can use the move from 3 (third bottom of the triple bottom, in October 2002, not shown) to 4, projected upward from the low at 6, in a measured move up chart pattern. That gives a target of 28.17, which is huge. I would be more conservative. The average rise of the 2nd leg is 31%. That would place a target of 14.75 (the low at 6) x 32% = 19.50. That's still a lot but it's better than 28.

Answer 3 (stop?): If I bought now, the day after point 6's low, I'd use a volatility stop (2x volatility is \$1.11): \$13.33 for a potential loss of 10.7%.

The end.

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