<<Read Part I, with charts for 19 stocks.

From the intro to Part I: This year Macro Ops created its own Classical Charting breakout alerts service. Our goal for the year was simple: Identify and trade the best-looking classical chart set-ups. 

We’ve documented the best trades from this year in this essay.  Each section represents a specific chart pattern and the best set-ups in those patterns. We’ll also provide details like chart pattern length and number of days to reach the price target. 

(Rectangle and Ascending/Descending Triangle Patterns covered in Part I)

Symmetrical Triangle

Uber Technologies (UBER)

• Chart Pattern Length: 19 weeks
• Days To Reach Price Target: 23

Normally I prefer more uniform symmetrical triangles (like the ones you’ll see below). But we added it here for two reasons. First, UBER was forming this massive symmetrical triangle after an IPO. I love watching IPOs develop trading bases as these can lead to aggressive moves (in either direction). Second, the stock never tested the chart pattern boundary and reached its price target in ~3 weeks. 

Rimini Technologies (RMNI)

• Chart Pattern Length: 14 weeks
• Days To Reach Price Target: 2

RMNI was one of the most explosive trades of the year. After failing to reach our 2% breakout threshold, the stock traded lower (testing the support boundary) before closing at the confirmed breakout level. The stock took two days to reach our price target. Those that held a couple of days longer would’ve doubled their profits-per-share. 

Employers Insurance Group (EIG)

• Chart Pattern Length: 26 months
• Days To Reach Price Target: 34

EIG completed its 26-month bearish symmetrical triangle pattern after breaking below the 20MA and 200MA. The stock took 34 days to reach its price target. 

Aflac, Inc. (AFL)

• Chart Pattern Length: 31 weeks
• Days To Reach Price Target: 7 

AFL was one of the best short opportunities we featured in 2020. The stock took 7 days to reach its price target. Yet those that held saw prices fall 50% before returning higher. 

Staar Surgical (STAA)

• Chart Pattern Length: 20 months
• Days To Reach Price Target: 96 

STAA broke out of a beautiful 20-month symmetrical triangle and took 96 days to reach the price target. The stock met resistance around new all-time-highs (ATHs) and retracted to its 20MA on the weekly time frame. 

Spotify, Inc. (SPOT)

• Chart Pattern Length: 21 weeks
• Days To Reach Price Target: 22

SPOT was another beautiful failed IPO base breakout. Like UBER (see above), the stock developed a long-term symmetrical triangle and broke out on a strong weekly candle. It took 22 days for the stock to reach its price target. Investors that held their shares for a larger move saw nearly $100/share extra in profits. 

Brink’s Company (BCO)

• Chart Pattern Length: 32 weeks
• Days To Reach Price Target: 11

BCO was a classic Gap-and-Go trade. The stock broke out with a strong gap breakout candle and never tested the Last Day Rule stop-loss price. We didn’t alert many Gap-and-Go trades this year. It’s hard finding these with any consistency. 

Sharpspring Inc (SHSP)

• Chart Pattern Length: 54 days
• Days To Reach Price Target: 2 

SHSP was a beautifully quick trade for a decent profit. The stock broke out and closed with a slight hammer bar. The next day SHSP took off and reached its profit target in two days. After hitting our price target the stock retraced back to the breakout line. 

Bed Bath & Beyond (BBBY)

• Chart Pattern Length: 49 days
• Days To Reach Price Target: 24 days

We nailed the brick-and-mortar long trade with this beautiful breakout from a symmetrical triangle. The stock never tested the Last Day Rule, though it did test the 20MA on its way to reaching the price target. 

Dillards, Inc. (DDS)

• Chart Pattern Length: 26 weeks
• Days To Reach Price Target: 6 

DDS was a classical high short-interest stock that broke out strong on large volume. We love trading high short-interest names because there’s tons of dry powder on the long side. They don’t always work but it tilts the odds in our favor of a strong, aggressive breakout. 

CADUSD Currency Pair

• Chart Pattern Length: 39 days
• Days To Reach Price Target: 8 

Canadian Dollar Futures (MCD!) presented a beautiful symmetrical triangle breakout and reached its price target in nine days. While we spent most of the year trading equity markets, we’re not afraid of alerting high-quality chart patterns in any market. 

Head & Shoulders Top

Big Lots (BIG)

• Chart Pattern Length: 43 days
• Days To Reach Price Target: 9 days

BIG was the picture-perfect example of a Head & Shoulders top. It’s one of those patterns that you can put in a classical charting book and identify the pattern 50 years from now. The stock had a clean breakdown and never tested the chart pattern boundary. 

Byline Bancorp (BY)

• Chart Pattern Length: 44 days
• Days To Reach Price Target: 5

BY broke down below the 20MA and 200MA. After completing the chart pattern the stock proceeded to close at or near its lows 3 out of the next four trading days. It took a mere 5 days to hit the price target. 

Inverse Head & Shoulders

Yandex (YNDX.RU)

• Chart Pattern Length: 44 days
• Days To Reach Price Target: 36

YDNX was one of our biggest winners in 2020. The stock tested the chart pattern boundary a couple of weeks after the breakout, but never put the Last Day Rule stop-loss in danger. It took 36 days to reach the price target. But investors that held past the price target saw another RUB1,700+ profit per share. 

Avantor (AVTR)

• Chart Pattern Length: 15 months
• Days To Reach Price Target: 15 weeks

AVTR was another one of our favorite IPO-base breakouts. The stock traded to ridiculously low prices during the COVID crises. As such, we used the low of the week after the outlying wick as our price target measured move. The stock hit our price target in 15 weeks. 

B Riley Financial Inc (RILY)

• Chart Pattern Length: 51 weeks
• Days To Reach Price Target: 34

RILY broke out of a perfect downward-sloping inverse H&S pattern and reached its chart pattern price target in 34 days. The stock broke out above its 20MA and 200MA without testing the chart pattern boundary. Notice how many white (bullish) bars appear after the breakout. 

AUD/USD Currency Pair

• Chart Pattern Length: 59 days
• Days To Reach Price Target: 25 

Australian Dollar Futures (M6A!) broke out of a 59-day inverse H&S pattern and never tested the Last Day Rule stop-loss placement. It took AUD 25 days to reach our price target. Again notice how the stock breaks out above the 20MA and 200MA. 

Bitcoin ($BTCUSD)

• Chart Pattern Length: 68 weeks
• Days To Reach Price Target: 35 

BTC was one of our top calls in 2020. The crypto broke out of its 68-week inverse H&S pattern and never looked back. It took only 35 days for the stock to reach its price target. 

Soybean Futures (XK!)

• Chart Pattern Length: 29 weeks
• Days To Reach Price Target: 19

Soybean Futures (XK!) broke out of a 29-week inverse H&S on a strong weekly candle. It took 19 days for the commodity to reach its price target. Those that held past the price target saw substantial profits. 

Cup and Handle

Advanced Micro Devices (AMD)

• Chart Pattern Length: 21 weeks
• Days To Reach Price Target: 6

AMD was one of our best cup-and-handle breakouts of the year for obvious reasons. The stock never tested the Last Day Rule stop-loss and gapped up twice on its way to a six-day price target profit. 

Fulgent Technologies (FLGT)

• Chart Pattern Length: 22 weeks
• Days To Reach Price Target: 7

FLGT completed its cup-and-handle chart pattern with a strong bullish breakout candle. The stock quickly gapped up and reached the price target in seven trading days. 

Wrapping Up

There’s no doubt we missed some great charts when compiling this list. Unfortunately not every trade looked as pretty as the above examples. We got a lot wrong this year. But by keeping those losses small (100bps loss at most) we’re able to end the year with substantial positive profits.