Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 124

Hughes Supply Inc. (HUG) in the fall of 1999 started forming a broadening formation, right‐angled and, yes, ascending. Although my notes go back to 1999, I don't have any for this trade. So let me wing it.

I bought 4 days after the stock touched the lower pattern trendline and received a fill at 13 even. When I bought, the stock hadn't risen much above the lower trendline (priced at 12.56), so I bought near the bottom of the pattern.

Unfortunately, the day I bought the stock peaked and reversed, completing a partial rise when the stock touched the lower trendline. The partial rise correctly predicted a downward breakout, and the stock continued lower. I sold my small position, received a fill at 12.34, and got my hand slapped for a loss of 5%.

I was late entering the trade, but I wanted to be sure price was moving higher, away from the bottom trendline when I bought. That sounds like an excuse, but knowing if price will turn at the trendline seemed like a wise choice. I only gave up 44 cents of profit by waiting.

I don't know if I had a stop in place to cash me out, and I'm unwilling to dig up my confirmation records to check. However, it's close enough to the 12.56 trendline that yes, I probably did use a stop to exit.

So the entry was late but justifiable, and the exit was perfect. I don't have a lesson to share. I traded this well and kept the loss small.