As of 09/15/2021
  Indus: 34,814 +236.82 +0.7%  
  Trans: 14,420 +134.87 +0.9%  
  Utils: 925 +0.27 +0.0%  
  Nasdaq: 15,162 +123.77 +0.8%  
  S&P 500: 4,481 +37.65 +0.8%  
YTD
 +13.7%  
 +15.3%  
 +7.0%  
 +17.6%  
 +19.3%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow965 or 905 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/15/21
As of 09/15/2021
  Indus: 34,814 +236.82 +0.7%  
  Trans: 14,420 +134.87 +0.9%  
  Utils: 925 +0.27 +0.0%  
  Nasdaq: 15,162 +123.77 +0.8%  
  S&P 500: 4,481 +37.65 +0.8%  
YTD
 +13.7%  
 +15.3%  
 +7.0%  
 +17.6%  
 +19.3%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow965 or 905 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/15/21

Bulkowski's Alcon Trading Quiz

 

Released 2/10/2021.

ACL: 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: 2 ascending scallops, 1 broadening top, descending triangle.
Answers are on the next slide.
2 / 3
chart pattern

Compare ascending scallop 1 and 2. Notice any difference? For scallop 2, the stock tops out (A) at a price not much higher than on the right side of the pattern.

Question 1: What does it mean when the right side of the scallop doesn't rise much higher than the left?
Question 2: Do you buy, sell, or short this stock?
Question 3: What is your price target?
Question 4: What is your stop price?
My answers appear on the next slide.
3 / 3
chart pattern

Answer 1 (nearly even price ends): It signals a trend change, but it's not a guarantee. However, you can see price already moving lower (after A).

Answer 2 (buy?): Sell an existing holding for short-term traders or sell short.

Answer 3 (target?): Assume price drops below the bottom of the scallop, confirming a downward breakout. The measure rule is the height of the pattern applied to the breakout. The high is at 80.48 directly below point A in the chart. The low is 73.70 for a height of 6.78. Since the measure rule works 62% of the time in a bull market, multiply the height by 62% (4.20) and subtract it from the lowest low for a target of 69.50, near the price level of point B.

Answer 4 (stop?): Volatility is high at 2.08, so you'd want to put your stop higher than 2.08 above the breakout (the lowest low, for a downward breakout). I show it as a horizontal red line near the scallop bowl low. If this is too close, then you can always raise the stop to the left scallop rim high at 79.17. Price reached a low above the highest volume spike on the chart, at a price of 64, below the target of 69.50. If you sold short at the scallop low and covered at the low on the chart, you would make 13%. That's for a perfect trade without commissions. Chances are you'd be lucky to get away with half that profit. If you failed to cover, you can see what happened to price.

The end.

See Also

 
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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Encyclopedia of Candlestick Charts Trading Classic Chart Patterns

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