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 Jones Apparel Group 1 (JNY) Trading Quiz

 

Released 11/30/2021.

JNY: 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!): ascending triangle, 3 broadening tops, broadening formation right-angled and ascending, head-and-shoulders bottom.

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

Note the partial rise that predicts a downward breakout from the broadening formation in August. The ascending triangle and head-and-shoulders bottom have broken out upward.

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?): Buy. The preferable entry is to have an order to buy a penny above the breakout price. That gets you in at the perfect price and false breakouts are rare.

Answer 2 (target?): Compute the height of the triangle from the top trendline to the lowest valley in the pattern and add it to the breakout price (the value of the horizontal trendline). The method works 70% of the time in a bull market.

Answer 3: Below point A is a good stop location. It's far enough away from the breakout and below the solid block of support just above it, and near the horizontal base of the broadening formation (a portion of that appears on the left of the chart). That would mean a potential loss of just 4%.

This is one of those cases when closely following the stock closely would have saved money. The day after the buy signal, price broke out downward, closing below the lower trendline, busting the upward breakout.

That was the sell signal.

The stock recovered and bobbled up and down around the triangle apex before gapping lower. If the original stop location remained intact (that is, if you didn't sell when price closed below the lower trendline), then your loss would have been 6% to 10%, depending on when you sold (and assuming you bought at 36.55, at the horizontal trendline and sold at the high/low respectively, after price gapped over your stop).

Often, when price does not act as predicted, then it's time to exit the position.

The End.

See Also

 
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