The Best Dressed Chart Patterns Of 2020 - Part I

Westlake (WLK)

  • Chart Pattern Length: 12 weeks
  • Days To Reach Price Target: 53

WLK broke out of its 12 week ascending triangle pattern and reached our price target in 53 trading days. The breakout coincided with a sharp rebound in the overall market. Again, we use individual stocks to time our entries and exits, not the general market. 

The stock experienced a sharp pullback on its way to the price target. Those that used the 200MA as their stop-loss target stayed with the trend the entire time. 

Midea Group (000333.HK)

  • Chart Pattern Length: 30 months
  • Days To Reach Price Target: 85 

Midea Group is another example of the power of long-term price consolidations. The stock broke out of a 30-month ascending triangle and reached its price target in 85 days. Notice how the stock never broke below the 20MA on the weekly chart on its way to the price target. 

Aesthetic Medical (AIH)

  • Chart Pattern Length: 12 weeks
  • Days To Reach Price Target: 16

AIH completed a perfect descending triangle after breaking below its support and 20/200MA. The stock took ~2 weeks to reach its price target without once testing the chart pattern boundary line. 

Editas Medicine, Inc. (EDIT)

  • Chart Pattern Length: 16 weeks
  • Days To Reach Price Target: 7

EDIT became one of the year’s best trades by accident. We featured the name as a potential H&S top (you can see the formation if you look closely). Yet as the stock failed to break down we noticed a potential break out from a descending triangle. 

We alerted members to this chart “morphology” (as PLB calls it). The stock took off and reached its price target in 7 trading days. Those that held a few more days generated another ~$38/share in profits.

 

>>Continue to Part II >> for 20 more charts in the categories of Symmetrical, Head & Shoulders Top, Inverse Head & Shoulders, and Cup & Handle, including not only stocks but some currency pairs, commodities futures and crypto.

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