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 Frontier Airlines Trading Quiz

Released 9/29/2020.

FRNT: 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 / 4
chart pattern
What chart patterns can you find? Look for the following: right-angled and ascending broadening formation, high and tight flag, big W (failed), head-and-shoulders top, double bottom.
Answers are on the next slide.
2 / 4
chart pattern

The failed big W are the two Ws that don't line up (they are supposed to in a working pattern). The Adam & Eve double bottom didn't work well, either. The two parallel lines on the right are a high and tight flag (HTF). Price moved from 6.71 to 13.08 in just over a month then backtracked and it looked like it was breaking out of the flag portion of the HTF.

Question: How do you trade the HTF pattern? The next page shows the price action and how I traded it.

This is from my trading notebook. Date: 12/23/04. Filled at: 11.69. Stop: 10.33. Upside target: 15. Future S&P direction (guess): Up.

Buy reason: High, tight flag with upward breakout as oil prices drop. A HTF is supposed to have a large up move - about half the length of the prior uptrend. That would mean a 3-point move up from the low of 10.73. That's about a 30% climb. I felt it was worth the risk.

The next slide shows the price action.
3 / 4
chart pattern

Clearly the airline was not cooperating as price tumbled instead of taking off.

What do you do now? Price looks like it might find support around the round number 10, which also corresponds to the consolidation region in early November.

Question: Do you hold on a bit longer, sell, or maybe even buy more (averaging down)?

The next page slide what I did.
4 / 4
chart pattern

Date: 1/4/2005. Filled at: 10.334. Sell reason: Hit stop on market sell off.

The stock hit my stop loss order and I was taken out for a loss of about 12%. Ouch. The good news is it could have been worse. I could have sold near the triple bottom low of about 8.

This chart shows the main reason I don't trade high and tight flags anymore. In fact, recent statistics rank it 30 out of 39 for performance where 1 is best.

The end.

See Also

 
Top of page
 

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My Stock Market Books
My Novels

Copyright © 2005-2024 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Privacy/Disclaimer