As of 10/03/2024
  Indus: 42,012 -184.93 -0.4%  
  Trans: 15,745 -226.81 -1.4%  
  Utils: 1,058 -6.74 -0.6%  
  Nasdaq: 17,918 -6.64 0.0%  
  S&P 500: 5,700 -9.60 -0.2%  
YTD
 +11.5%  
-1.0%  
 +20.0%  
 +19.4%  
 +19.5%  
  Targets    Overview: 09/30/2024  
  Up arrow43,500 or 41,600 by 10/15/2024
  Up arrow16,800 or 15,700 by 10/15/2024
  Up arrow1,125 or 1,025 by 10/15/2024
  Up arrow19,000 or 17,600 by 10/15/2024
  Up arrow5,900 or 5,600 by 10/15/2024
As of 10/03/2024
  Indus: 42,012 -184.93 -0.4%  
  Trans: 15,745 -226.81 -1.4%  
  Utils: 1,058 -6.74 -0.6%  
  Nasdaq: 17,918 -6.64 0.0%  
  S&P 500: 5,700 -9.60 -0.2%  
YTD
 +11.5%  
-1.0%  
 +20.0%  
 +19.4%  
 +19.5%  
  Targets    Overview: 09/30/2024  
  Up arrow43,500 or 41,600 by 10/15/2024
  Up arrow16,800 or 15,700 by 10/15/2024
  Up arrow1,125 or 1,025 by 10/15/2024
  Up arrow19,000 or 17,600 by 10/15/2024
  Up arrow5,900 or 5,600 by 10/15/2024

Bulkowski's Intertape Polymer (ITP) Trading Quiz

Released 11/29/2021.

ITP: 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 / 3
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): 2 head-and-shoulders bottoms, rising wedge, three rising valleys, and a dead-cat bounce.

The answer is on the next slide.
2 / 3
chart pattern

The rising wedge has an upward breakout, confirmed when price closes above the top trendline.

Question 1: Do you buy or sell short the stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3
chart pattern

Answer 1 (buy?): I don't like wedges and the upward breakout is unusual. It's a buy signal though.

Answer 2 (target?): Take the height of the wedge, multiply it by 63% (because that's how often this measure rule works) and add it to the breakout price. The top of the wedge is at 10.43, low at 9.62 for a height of 81 cents. Multiply by 63% to get 51 cents and add it to the breakout price of 10.43 to get 10.94.

Answer 3: With low priced stocks, they are more volatile and it's more difficult to place a stop. I would probably use a volatility stop on this one. That places it at 9.75 or 6.8% below the current close. A volatility stop is computed by finding the daily high-low range over the last month and averaging the values, multiplying by 2 and subtracting the result from the current low. It's a way to prevent being stopped out by normal price action.

The stock plummeted in a dead-cat bounce on a lower sales outlook. If you trade stocks long enough, you will probably run across a dead cat bounce. Even if you placed a stop below the bottom of the chart pattern, you would have lost more than that as price opened lower. On 7/28, the stock closed at 11.10 and it opened the following day at 9.25 before closing at 7.95, a close-to-close decline of 28%.

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 notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My Stock Market Books
My Novels

Copyright © 2005-2024 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 Privacy/Disclaimer