Are You Using This Classic Pattern?
Breakouts from consolidation patterns often
provide the energy a stock needs before it resumes its trend higher. Call it
a rest period, or call it a symmetrical triangle, one things for certain, given
the proper background evidence these are setups worth looking for.
11:27:07
Intraday
Setup Alert
From the Nightly
Daytraders Report, Qualcomm (QCOM)
is demonstrating relative strength as it looks to be resuming its trend
higher out of a consolidation pattern that has been toiling with the 13 and
50-Day EMAs from the daily chart. QCOM was listed under Institutional Favorites
and is currently trading higher at 37.40, up .31.
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A Trap Door entry would have been nice, but given
the background evidence that QCOM was one to watch for leadership, a trade entry
out of a consolidation pattern like the symmetrical triangle makes for an odds
on favorite as well. Symmetrical triangles are notorious for being continuation
patterns (I’ve read upwards of 70%). So when given the opportunity to take a
high probability trade on a stock that already favors further upside momentum,
take it. You know that you’ve just found what you’ve been looking for, and in
QCOM’s case this pattern leads to gains of .70 before another consolidation
pattern emerges.
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