5 point pattern trading

[phillyflipper]

FOREST LABS FRX BEARISH BUTTERFLY triggered 01/25/07. when these patterns work you expect them to take out point A.
did this pattern work?? Most of us would have been stopped out shortly after entry. this is where YOUR rules have to rule. How wide a stop. Do you trail your stop?? In this case if you trailed your stop you would be taken out before it reached point A. Look at that move back up to point D before diving back down.
This is what you need to know and understand that most books will not tell you

 

[phillyflipper]

PPH PHARMACEUTICAL HOLDERS....A good way to play Pharma without the risk of picking one wrong company. 8/16/07 triggered a bullish butterfly at 73.00 and not much opportunity for an entry near the 73.00 price. This will be on my radar for a possible entry on a pull back ....if we can get one. Bounced very hard off point D which is very strong.

 

[phillyflipper]

XLE ENERGY SPYDER ETF Bullish butterfly triggered on 8/16/07 on a 60 minute chart and within 3 weeks a 9 point gain. this is ideally how you want to see these patterns work. this trade took no heat after the point D completion.

 

[phillyflipper]

EMN EATSTMAN CHEMICAL. Triggered a bullish gartley pattern on 9/10 on a 60 minute chart. Pullback to 64.50 may be a good long entry if it pulls back. This pattern is bullish until X is broken.

 

[phillyflipper]

ABT ABBOTT LABS Bearish butterfly pattern showing up on monthly Abbott chart. I don't know anything about this company
but the pattern suggests you may want to take something off the table on any strength to the upside from here. Just a suggestion. I do not own it

 

[arco]

Phillyflipper

Do you have a program that picks up the 5 point patterns automatically on a daily scan?

rgds - arco

 

[phillyflipper]

Quote from arco:

Phillyflipper

Do you have a program that picks up the 5 point patterns automatically on a daily scan?

rgds - arco

No, I do not have anything like that. I have to pull up each stock and my syudy will find the patterns based on my Fib parameters .
the study is by Divergence Software for e-signal users.

 

[phillyflipper]

ES 60 minute bearish Butterfly pattern

 

[phillyflipper]

QQQQ 60min Bearish butterfly. 50.00 real key area here. 3 bearish patterns here. Is the QQQQ trying to tell us something??
I am not opposed to conventional patterns. The QQQQ is showing an inverted head and shoulders pattern on the Daily chart that is Bullish as well as a Adam, Adam double top which is bearish, so if 50.00 holds as support on the Daily then the inverted head and shoulders can win the battle. There is always two sides to every trade and only time will tell

 

[phillyflipper]

here is the conventional inverted head and shoulders(bullish) and adam, adam double top (bearish) for QQQQ