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 Apogee Enterprise Trading Quiz

 

Released 5/11/2021.

APOG: 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 / 9
chart pattern

What chart patterns can you find? Look for the following: 2 pipe bottoms, pipe top, a horn top, symmetrical triangle, descending triangle, and a channel.

Answers are on the next slide.
2 / 9
chart pattern

This chart is on the weekly scale.

A head-and-shoulders top in late 2001 (red) might form if price reaches the height of the left shoulder. It has a high of 15.70 so expect price to top out around 15, just in case it doesn't match the left shoulder high. As to overhead resistance zones, if you draw a horizontal line from the left shoulder to the right, you find patches of resistance. I show the lines bounding the region in green. The left shoulder block of price movement is clear but there's also a pause when price declines from the head downward. I would expect price to stall in that range. Thus, a head-and-shoulders top might be likely.

Let's look at the daily scale - next slide.
3 / 9
chart pattern

This chart is on the daily scale. What chart patterns can you find here? Hint. Look for the following chart patterns: diamond top, ascending triangle, descending triangle, broadening top.

Answers are on the next slide.
4 / 9
chart pattern

This chart shows a descending triangle with an upward breakout.


Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
The next slide shows the chart.
5 / 9
chart pattern

Answer 1 (buy?): Buy. The breakout is upward, so trade with the trend. Notice, however, that price is going to hit overhead resistance. This might be a top trap.

Answer 2 (target?): You can use the measure rule for the triangle, which is the height added to the breakout price to get a target. This time, however, let's use support and resistance.

I see stiff overhead resistance in the solid block of price movement in January 2002 compounded by the July peak. I expect the stock to stall or even reverse at that price, maybe causing a throwback. This is the same as the head-and-shoulders we saw on the weekly scale. The left shoulder is in July and the head in December.

Answer 3 (stop?): Certainly the bottom of the triangle is a good place. Price already shows support there. I'd check placement for volatility to see how close it should be placed (see volatility stop).

See the next slide.
6 / 9
chart pattern

The stock broke out upward from the triangle and climbed, touched the top of the resistance zone, and has now closed lower. I show the price trend in the inset. Do you see anything that might cause you to sell?

Question: Do you hold onto the stock, buy more, or sell, maybe even sell short?

One answer appears on the next slide.
7 / 9
chart pattern

The rising wedge looks almost like a channel except the lines aren't parallel as they are in a channel. Since the wedge has a downward breakout, that means sell, but is it the right decision?

See the next slide.
8 / 9
chart pattern

The stock found support and formed the descending triangle before climbing to create an Eve & Eve double top. After that pattern confirmed (when price closed below the valley between the two highs), price continued lower, cutting itself in half (15.60 to 7.57). In this case, selling a long holding and shorting the stock would have been a good move. Holding on would have been a costly mistake.

The next slide shows the weekly scale.
9 / 9
chart pattern

Here's the weekly scale, and we guessed right about the head-and-shoulders.

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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