As of 05/24/2024
  Indus: 39,070 +4.33 +0.0%  
  Trans: 15,083 +74.08 +0.5%  
  Utils: 926 +1.92 +0.2%  
  Nasdaq: 16,921 +184.76 +1.1%  
  S&P 500: 5,305 +36.88 +0.7%  
YTD
 +3.7%  
-5.1%  
 +5.0%  
 +12.7%  
 +11.2%  
  Targets    Overview: 05/13/2024  
  Up arrow41,000 or 38,500 by 06/01/2024
  Up arrow16,050 or 15,300 by 06/01/2024
  Up arrow960 or 900 by 06/01/2024
  Up arrow17,250 or 15,850 by 06/01/2024
  Up arrow5,500 or 5,100 by 06/01/2024
As of 05/24/2024
  Indus: 39,070 +4.33 +0.0%  
  Trans: 15,083 +74.08 +0.5%  
  Utils: 926 +1.92 +0.2%  
  Nasdaq: 16,921 +184.76 +1.1%  
  S&P 500: 5,305 +36.88 +0.7%  
YTD
 +3.7%  
-5.1%  
 +5.0%  
 +12.7%  
 +11.2%  
  Targets    Overview: 05/13/2024  
  Up arrow41,000 or 38,500 by 06/01/2024
  Up arrow16,050 or 15,300 by 06/01/2024
  Up arrow960 or 900 by 06/01/2024
  Up arrow17,250 or 15,850 by 06/01/2024
  Up arrow5,500 or 5,100 by 06/01/2024

Bulkowski's Northwest Pipe (NWPX) 2 Trading Quiz

Released 3/29/2022.

NWPX 2: 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 (if you find others, great!): descending triangle, symmetrical triangle, triple bottom (hint: middle of chart), ascending scallop.

The answer is on the next slide.
2 / 3
chart pattern

Points 1, 2, and 3 are the triple bottom. Bottom 2 is composed of two minor lows. You might want to draw a horizontal line along the bottoms and an up-sloping trendline along the tops and call it a broadening top, right-angled and ascending. The descending triangle has broken out downward on very high volume.

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3
chart pattern

Answer 1 (trade?): Short the stock or sell an existing holding.

Answer 2 (target?): Use the measure rule to predict a price target. Take the height of the triangle (highest high to lowest low in the pattern) and subtract the height from the breakout price - the price where it breaks the lower trendline. That places the target at 18.95.

Answer 3 (stop?): You can't use the top of the pattern as a stop because it's 15% away. That's too far. I'd place it at 22.51, which is 9% away. I show the location just above A.

Price made the type of chart pattern that I look for: A downward breakout from the descending triangle that busts when price breaks out upward. They usually lead to a strong rally, as in this case.

The End.

See Also

 
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