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 Northwest Pipe (NWPX) 2 Trading Quiz

Released 3/29/2022.

NWPX 2: 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!): descending triangle, symmetrical triangle, triple bottom (hint: middle of chart), ascending scallop.

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

Points 1, 2, and 3 are the triple bottom. Bottom 2 is composed of two minor lows. You might want to draw a horizontal line along the bottoms and an up-sloping trendline along the tops and call it a broadening top, right-angled and ascending. The descending triangle has broken out downward on very high volume.

Question 1: Do you buy, short, or avoid trading this 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 (trade?): Short the stock or sell an existing holding.

Answer 2 (target?): Use the measure rule to predict a price target. Take the height of the triangle (highest high to lowest low in the pattern) and subtract the height from the breakout price - the price where it breaks the lower trendline. That places the target at 18.95.

Answer 3 (stop?): You can't use the top of the pattern as a stop because it's 15% away. That's too far. I'd place it at 22.51, which is 9% away. I show the location just above A.

Price made the type of chart pattern that I look for: A downward breakout from the descending triangle that busts when price breaks out upward. They usually lead to a strong rally, as in this case.

The End.

See Also

 
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