5 point pattern trading

OFFICE DEPOT ODP This is a Failed bullish butterfly pattern.
this would have hurt you bsdly if you failed to react after point D was violated. there are times when small failures will recover but you and I can never know which will recover and which will not so use a stop or know where you will bail. This went down fast. I show these so no one thinks this is a one sided study and also to help us learn how to capitalize even when there is a failure.

If trading was easy for everyone it would not work because we would all be doing the same thing and thinking the same way.
 

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OSK OSHKOSH TRUCK. Oh my gosh Oshkosh hit a "Bat" on 7/13/07 and swerved off the road. There may be more downside to come but you want to see this push up first. Getting short here is bad positioning in my opinion. If you miss a good entry go on to the next stock.
 

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ROCKWELL ROK STARTED ROCKIN WHEN MR. GARTLEY CAME A KNOCKIN. 4/13/07 a Gartley pattern was triggered and Rocwell never looked back. You can see that very high selling volume spike on 4/05/07 that preceded the pattern completion.

I also want to point out that many traders who teach and use these patterns may not consider this a Gartley pattern because the XAB swing exceeds .618 retracement and the XAD swing exceeds .786. My study picked it up because I allow for a range
of acceptable retracements for each swing so i and you must decide even after apattern is spotted if it should be taken.

We know now that this should be taken
 

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let's keep watch on Arch chemicals ARJ because it just triggered a
butterfly short pattern so we do not have hindsight on this one.
You can see volume is drying up. We went above point D today and closed at point D. This is a short pattern here
 

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I just bought some amgn 49.17 on this pullback using 48.00 area point D as my guide for downside risk. this is a long term hold not a day trade. We can revisit 48.00 area but we do not know for sure.
 

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here is a monthly chart of Cooper Tire showing a bullish pattern that kicked off a nice run. This is why I scour the charts

i had this posted but the chart is damaged so i am posting this cooper tire monthly chart again
 

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