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 S&P 500 stock opportunities by analyzing these patterns.

Buy Signal for F5, Inc. (FFIV) (Rectangle Bottom)

The rectangle bottom pattern forms when the price of a security is stuck in a range-bound motion. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first, buyers or sellers, the price can breakout in either direction.

This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong downtrend leading into the formation.

Trade Idea:

• Buy near the breakout (entry) price – $203,36.
• Sell at the target (exit) price – $212,39.

Trend trading is a strategy based on the technical analysis of changing market prices. The trend trader enters into a long position when a stock is trending upward and uses the short position when a stock is trending downward.

Buy Signals for ConocoPhillips (COP), Halliburton Company (HAL), Devon Energy Corp. (DVN), & People's United Financial (PBCT)

Trade Idea:

• Buy at the opening of the stock market on Monday if the opening price has gone up by no more than 0.5% of Friday's closing price.
• Sell after the price has risen by 2% from Friday's closing price, or at the end of the trading week if the target is not reached.

Buy Signal for Kroger Co. (KR)

Trade Idea:

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