What Do You Call A Winning Trade?
There are many different technical
patterns out there that closely resemble one another. Sometimes it can be
difficult to distinguish one formation from the other…but that’s just the
point. Know which patterns are based on similar principles, and when you “see
it,” go for the entry that is definitely there…no matter what you call it.
10:21:59
Intraday
Setup Alert
USA Interactive (USAI)
has triggered out of a Taglia
Gap in today’s trade. The stock is now consolidating in a Slim
Jim as it looks to make good on a continuation move higher. USAI is up 1.85
at 31.80, with High of Day breakouts above 31.95.
Heck, at the time of my initial alert, I called
it a Slim Jim, but upon further investigation I recognized an even tighter
consolidation pattern taking shape, and that was a potential triangle
breakout. The technical principle and trade intentions are essentially the
same, with only a slight deviation in how the consolidation is defined. In this
case, both showed breakouts triggering above 31.80. What you wanted to call it
was purely an academic discussion, because taking the trade would have produced
real-world profits.