Near-perfect pennant pattern

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  • #180133 Report

    Thought this might be of interest to technical aficionados – image shows NASDAQ 2min chart from yesterday, v nice text-book example.

    We all know that, in theory, pennant formation is “always” a continuation pattern but it’s reassuring to see it play out in the real world.

    Confusing as hell when you’re in it – in this case 4 hours of lower highs AND higher lows – then the perfect breakout above 15450 at around 19:50 UK time.

    Gotta trust the theory.

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    #180136 Report

    Great stuff and happens most of the time when things turn out well for a day. Btw, I see this happening after lunch time in the US.
    If it does not happen (always waiting for it) things will turn bad.

    … If it does happen I’ll have another beer and stop paying attention. Like yesterday …
    OUCH !!

    But this is a quite rare after-market happening, in this case caused by SNAP and Intel. The upside : it counts for the figures for today. So all opportunity to recover.

    Thank you for a nice post / subject !

     

    PS: The 1st attachment was meant to be the second, showing today’s “recovery” (for as long as it takes).

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    #180140 Report

    PS: the 1st attachment was meant to be the 2nd, showing today’s recovery (for as long as it takes).

    #180144 Report

    Confusing as hell when you’re in it – in this case 4 hours of lower highs AND higher lows – then the perfect breakout above 15450 at around 19:50 UK time.

    Or … what you can see from these patterns is how e.g. Powel is speaking, leading to a climax at some stage. Thus in general : some climax, without a real Good or Bad that I can recognize. Just “the end” of the speech or whatever it is.
    Btw, I don’t know what it really was yesterday, and I expected something about EU top gathering. But I did not see it or did not know where to look.

    #180147 Report

    in this case caused by SNAP and Intel

    I was wondering why it fell off a cliff so dramatically just after the close – assumed it must have been due to bad results somewhere. no amount of theory can help you there.

    Happily I had closed out before that …

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    #180148 Report

    I think that triangle patterns are the most representative of the investors behavior on the market: indecision and exhaustion are often the premise of something that will happen soon.

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    #180156 Report

    I was wondering why it fell off a cliff so dramatically just after the close – assumed it must have been due to bad results somewhere.

    Not really bad results, but merely a less than good prospectus (not related to Guidance really). Intel was at -9%. SNAP at -30% !!.

    The situation was extra-ordinary (rare) because I sat there watching my phone regularly (like each few secs after closing, knowing that I have SNAP and was eager for the Q results) and with my eye on the first immediate drop of 25% to over 30%, I saw my quite unexpected gains for the evening (see your OP) vanish in one blast, with only the luck that this gain has been there;
    Only at 00:00 (23:00 for you) I saw what happened really : the whole Nasdaq had collapsed (sort of), while I thought that the loss was all caused by the SNAP I own (who ever calculates with -30% ?!?).

    Anyway, one of the things we need to take into account are the large ones which influence the whole index (like Apple, Intel, MS, now Tesla). So if they come with Q figures, be prepared that one can draw down all (or lift all). That is what happened here, in my view.

     

    PS: The attachment want not really intended (recovery of SNAP so far). No clue how to remove an attachment afterwards, after posting.

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    #180161 Report

    It’s so long since I’ve traded equities I’d forgotten how crazy it can get when results come out. Unless you’re into a position long term it can often feel more like gambling than investing, esp with tech stocks.

    Never mind, next time it will go your way and you’ll be +30% !

    #180424 Report

    Hi nonetheless

    If you are interested in trading this pattern type further I can strongly recommend Kristjan Kullamagi.  A Swedish trader that trades these pattern types, very successfully.  https://qullamaggie.com/

    All free, daily stream on Twitch with historical videos on YouTube.  Similar to Dan Zanger and StockBee.  I’m working on a screener in PRT for this flag pattern, but it needs a good 30-100% run up first, then a consolidation for 10 to 40 bars before trading the breakout.

    Best of luck!

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