Yesterday, I gave AOT members and also my fellow twitter followers a "Pop Quiz" ....
First 3 people to answer the following 3 questions correctly will win a free gift!!
1: What pattern do you see in the AMGN chart below?
2: What's the entry based on the chart setup?
3: What are the target(s)?
Thank you to all who participated in today's POP QUIZ and many of you did !
So here are the answers I was looking for:
The chart pattern shown in the above AMGN chart is technically called a: 'CUP and HANDLE' pattern
Here's what it looks like:
These patterns are actually quite common in bull markets and they are generally quite bullish.
This pattern was made popular by William O'Neil, founder of IBD(Investors Business Daily) and the "CANSLIM" method.
Here's how to calculate the targets:
Don't worry too much about the "width" of the pattern, just focus on the HEIGHT of the "CUP" and the "HANDLE" to measure the targets from the breakout area.
.....and here's the AMGN 'CUP and HANDLE' pattern !!
Do you see it as well ?
Will you be able to spot it?
As always, if you have any questions, comments or feedback, please let me know!!