Stock Consolidation Patterns In Trend Following

By Andy Abraham of Trend Following Mentor

Consultant at Abraham Trading Consultants • Mar 12, 2017 at 5:58 PM EDT

Stock consolidation patterns give investors potential to take up new positions in trend following or even add on a successful position. When adding or pyramiding, one should not get to top heavy.

Stock consolidation patterns give investors potential to take up new positions in trend following or even add on a successful position. When adding or pyramiding, one should not get to top heavy. When I add to my stock positions, I will only add 10% of my position size on any consolidation or even pull back to the 50 Day moving average.

Below are some examples that are on the watch list:

AEIS at $64.63 is in a buy range above $63.85 buy point in 5 weeks tight pattern.

ANET at $124.17 is in a buy range above $123.22 buy point in 3-weeks tight pattern.

CMA at $72.16 is in a buy range from $71.30 flat base entry.

MRCY at $38.16 is near a $38.63 buy point in 4-weeks tight pattern.

Disclosure:

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I may hold positions in these stocks mentioned in the blog.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.