As of 08/05/2024   Indus: 38,703 -1,033.99 -2.6%     Trans: 15,112 -269.42 -1.8%     Utils: 991 -27.25 -2.7%     Nasdaq: 16,200 -576.08 -3.4%     S&P 500: 5,186 -160.23 -3.0% YTD  +2.7%   -4.9%    +12.4%    +7.9%    +8.7% Overview: 07/29/2024     41,500 or 40,000 by 08/15/2024   16,500 or 15,600 by 08/15/2024   1,025 or 935 by 08/15/2024   18,200 or 16,700 by 08/15/2024   5,750 or 5,300 by 08/15/2024
 As of 08/05/2024   Indus: 38,703 -1,033.99 -2.6%     Trans: 15,112 -269.42 -1.8%     Utils: 991 -27.25 -2.7%     Nasdaq: 16,200 -576.08 -3.4%     S&P 500: 5,186 -160.23 -3.0% YTD  +2.7%   -4.9%    +12.4%    +7.9%    +8.7% Overview: 07/29/2024     41,500 or 40,000 by 08/15/2024   16,500 or 15,600 by 08/15/2024   1,025 or 935 by 08/15/2024   18,200 or 16,700 by 08/15/2024   5,750 or 5,300 by 08/15/2024

Released 12/17/2020.

## YHOO: 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
What chart patterns can you find? Look for the following: rectangle top, descending broadening wedge, falling wedge, triple bottom if you combine the first two bottoms - it's also a Big W, ascending scallop, and simple ABC correction.
Answers are on the next slide.
2 / 3

The simple ABC correction is the mystery pattern. Think of it as a measured move down nested inside a measured move up. If you're not sure what all of that means then check my website. You won't find the ABC pattern in my Encyclopedia...

Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
My answers appear on the next slide.
3 / 3

Answer 2 (target?): Let's assume price breaks out upward. Many will reverse at 4 and form a double top, so keep that in mind. You can use the move from 3 (third bottom of the triple bottom, in October 2002, not shown) to 4, projected upward from the low at 6, in a measured move up chart pattern. That gives a target of 28.17, which is huge. I would be more conservative. The average rise of the 2nd leg is 31%. That would place a target of 14.75 (the low at 6) x 32% = 19.50. That's still a lot but it's better than 28.

Answer 3 (stop?): If I bought now, the day after point 6's low, I'd use a volatility stop (2x volatility is \$1.11): \$13.33 for a potential loss of 10.7%.

The end.

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