As of 12/01/2023   Indus: 36,246 +294.61 +0.8%     Trans: 15,464 +445.25 +3.0%     Utils: 876 +9.25 +1.1%     Nasdaq: 14,305 +78.81 +0.6%     S&P 500: 4,595 +26.83 +0.6% YTD  +9.3%    +15.5%   -9.4%    +36.7%    +19.7% Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023
 As of 12/01/2023   Indus: 36,246 +294.61 +0.8%     Trans: 15,464 +445.25 +3.0%     Utils: 876 +9.25 +1.1%     Nasdaq: 14,305 +78.81 +0.6%     S&P 500: 4,595 +26.83 +0.6% YTD  +9.3%    +15.5%   -9.4%    +36.7%    +19.7% Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023

# 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

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

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 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3

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.

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