Price Patterns Class 8/29

Here is a quick compilation of symbols for various patterns we followed up on and introduced for this week. Keep an eye out for breakouts of each of these patterns.

FCX- Ascending Triangle. Not an ideal location being at the bottom of a pullback, but worth watching regardless.

JLG- Descending Triangle...BROKE TODAY

PTEN- Inverse Head & Shoudlers pattern, no sign of confirmation yet.

ARG- Already had confirmation, but strong re-test today!

TKR- Large Symmetrical Triangle, still waiting for confirmation.

OIS- Descending Triangle

THE- Descending Triangle

ATI- Descending Triangle

MLM- Desceding Triangle

BTU- Descending Triangle

DIS- Symmetrial Triangle

TTI- Symmetrical Triangle

CVD- Pennant formation

As with all trades we watch in this class, no trades should be taken until a confirmation is given. The general rule on confirmation is a closing price to land outside a target support or resistance line accompanied with heavy volume.

Jeff--HELP!! The one thing I thought I could do pretty consistently was identify triangles, but I'm having a time trying to see most of the descending triangles....the most consistent thing I'm seeing in the past 1 1/2 wks is sideways lines...could you throw a simple chart or even a brief description for a few of these?

By the way--we are so glad to find an instructor who is a 'unicorn' too.

Perhaps it is your time frame. Descending triangles don't exist over 1 1/2 weeks. The minimum time frame for a descending triangle ought to be 1-3 months minimum. I drew the pattern on THE a while back. The article is in the archive...but paste this link in your browser to see...it's a perfect example with great consistency.

http://optionaddict.blogspot.com/2006/08/yawnand-trade-on.html

I noticed on ARG that the stock rallied at the end of the day to perform a hammer candlestick pattern. It closed outside of the descending triangle, but just barely. Do you still trade this breakout? Do you wait to see where it opens tomorrow? Just wondering what your mentality is on this trade.

I meant JLG, not ARG

How about goog? Would you call that a triangle also. I am see lots of triangles these days like grmn etc could it be due to low volumes.

It looks like BTU broke out today also.

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