As of 07/23/2024
  Indus: 40,358 -57.35 -0.1%  
  Trans: 15,656 -244.42 -1.5%  
  Utils: 952 -5.51 -0.6%  
  Nasdaq: 17,997 -10.22 -0.1%  
  S&P 500: 5,556 -8.67 -0.2%  
YTD
 +7.1%  
-1.5%  
 +8.0%  
 +19.9%  
 +16.5%  
  Targets    Overview: 07/12/2024  
  Up arrow41,500 or 40,000 by 08/01/2024
  Up arrow16,500 or 15,600 by 08/01/2024
  Up arrow1,000 or 910 by 08/01/2024
  Up arrow19,200 or 17,800 by 08/01/2024
  Up arrow5,750 or 5,500 by 08/01/2024
As of 07/23/2024
  Indus: 40,358 -57.35 -0.1%  
  Trans: 15,656 -244.42 -1.5%  
  Utils: 952 -5.51 -0.6%  
  Nasdaq: 17,997 -10.22 -0.1%  
  S&P 500: 5,556 -8.67 -0.2%  
YTD
 +7.1%  
-1.5%  
 +8.0%  
 +19.9%  
 +16.5%  
  Targets    Overview: 07/12/2024  
  Up arrow41,500 or 40,000 by 08/01/2024
  Up arrow16,500 or 15,600 by 08/01/2024
  Up arrow1,000 or 910 by 08/01/2024
  Up arrow19,200 or 17,800 by 08/01/2024
  Up arrow5,750 or 5,500 by 08/01/2024

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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