Trading Triangle Patterns – Performance Update
As a trader, its vital to see and understand the patterns that are working best in any market. And which are most likely to do well in the weeks ahead.
We have to know our best entry point to have a good shot at an enormous profit while using a tight stop-loss.
We want trades with huge upside, low risk and a high success rate. Its critical to our success.
So in this post I want to talk about what is leading to the biggest moves on top growth stocks. So we can use this information to capture the biggest trades the market will offer in the weeks and months ahead. Trading triangle patterns continues to work very well on top stocks.
Over the past couple months we have had a lot of big winners in the Daily Alert. Stocks like PAYC, NOW, ROKU, UBNT, CYBR, PANW, TTD, NFLX, SCWX and many others that have soared 20% to 50% higher within 2 or 3 weeks.
Analyzing all of the best growth stocks from late last year and early this year, there are 3 patterns that have been big winners.
The explosive bottoming pattern, high tight flag breakouts and large triangle consolidation breakouts within long-term up-trends.
One of the best moves in the market late last year and early this year came from NFLX. The price had come down to near a multi-year uptrend support in a descending wedge pattern – a large triangle pattern.
NFLX broke out of the top of the wedge pattern and then ran 30% higher within 2 weeks.
SCWX broke out of another type of large triangle, the symmetrical triangle pattern, and quickly ran over 40% higher in just 1 week after being featured in the Daily Alert in January.
IRBT is already up nearly 20% after breaking out of a symmetrical triangle it broke out of a week ago. All three opportunities were delivered to customers just before these stocks exploded higher.
Large descending wedges and symmetrical triangles within long-term up-trends have been outperforming for a couple years now. Last year we saw AMZN, SQ, UPLD and others soar out of these large triangle patterns. We continue to see a lot of success trading triangle patterns.
We have also seen a few high, tight flags come up on our radar that meet the requirements in our strategy. QTT just soared 30% within a few days on 2 separate occasions over the past three weeks. ESTC, OKTA and others mentioned in the Daily Alert made nice moves out of high, tight flags.
As is often the case, explosive bottoming pattern breakouts had a great run early in the year right after the correction. CGC soared 50% and TTD ran 40% out of our favorite bottoming pattern.
Both of these stocks were mentioned in the Daily Alert just before the 40%+ move higher.
Now that the market averages are back above the 200 day moving average, we are seeing more and more high, tight flag patterns set up.
If the market continues to hold up well in the face of bad headlines, the high, tight flag breakout should do very well. In fact, after the next market pullback it could be a bull flag bonanza for a few months.
Of course we will stay on top of which technical strategies on top stocks are the big winners in the months ahead. Here is a great example of how we trade one of our favorite triangle patterns – the symmetrical triangle.