The Best Dressed Chart Patterns Of 2020 - Part I

Volvo (VOLV_B)

  • Chart Pattern Length: 9.8 weeks
  • Days To Reach Price Target: 10 days

VOLV was a beautiful trade for a couple reasons. First, it had a clean breakout and well-positioned Last Day Rule stop-loss. This allowed us to size big while risking (at most) 100bps. The stock hit our price target in 10 days before reversing in a sharp correction. 

Peloton (PTON)

  • Chart Pattern Length: 5.4 weeks
  • Days To Reach Price Target: 9

PTON was one of our largest winners. As you can tell, the stock originally broke out of a long-term inverse Head and Shoulders pattern. The rectangle we traded was a continuation pattern on the daily time frame. Those that held beyond the price target generated upwards of $100/share in profit. 

Celsius (CELH)

  • Chart Pattern Length: 32 months
  • Days To Reach Price Target: 44 days

CELH broke out of a 32-month rectangle base and never looked back. The stock rocketed >120% in less than two months. CELH is a perfect example of the power of longer-term chart pattern developments. Stocks that breakout of long-term bases have a lot of dry powder behind them. 

Ligand Pharmaceuticals (LGND)

  • Chart Pattern Length: 35 days
  • Days To Reach Price Target: 3 

LGND broke out of its rectangle pattern and quickly reached our price target in 3 trading days. This is the perfect trade because we can turn over our edge faster. Leading to greater compounded gains. 

Ascending / Descending Triangles

Ciner Resources (CINR)

  • Chart Pattern Length: 20 weeks
  • Days To Reach Price Target: 8 days

CINR showed signs of price weakness before the March crash as it broke below its support of a 20-week descending triangle. It took 8 days to hit our price target but those that held longer received much higher returns. 

County Bancorp (ICBK)

  • Chart Pattern Length: 11 weeks
  • Days To Reach Price Target: 3 days

I don’t like trading banks. But sometimes a chart appears so tantalizing I can’t help myself. ICBK was that chart. The stock broke below its 20MA and 200MA and took 3 days to reach our price target. That said, those that held longer generated ~$10/share in profits. 

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