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A security pattern traces the distinct movements of security prices that, once recognized, help traders to make informed trading decisions. These patterns are identified by their vital geometrical elements, which are formed by changing security prices. Let's look at some ETF opportunities by analyzing these patterns.

Buy Signal for Vanguard Intermediate-Term Treasury Index Fund (VGIT) (Wedge Falling)

The wedge falling pattern forms when the price of a security appears to be spiraling downward and two down-­sloping lines are created, with the price hitting lower lows (1, 3, 5) and lower highs (2, 4). The pattern lines intersect to form a narrow triangle. Unlike descending triangle patterns, both lines need to have a distinct downward slope, with the top line having a steeper decline.

This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout).

Trade Idea:

• Buy near the breakout (entry) price – $61.31.
• Sell at the target (exit) price – $61.74.

Buy Signals for Energy Select Sector SPDR Fund (XLE), Schwab U.S. Dividend Equity ETF (SCHD), & Health Care Select Sector SPDR Fund (XLV)

Trade Idea:

• Buy at the opening of the stock market on Monday if the price is seen as appealing.
• Sell after the price has risen by 0,5% from Friday's closing price, or at the end of the trading week if the target is not reached.

Buy Signal for iShares Core High Dividend ETF (HDV)

Trade Idea:

• Buy HDV at the current market price if seen as appealing.
• Sell HDV after receiving the "sell" recommendation from trusted analyses.