I am going to be more selective for chart patterns in US stocks. This will include the following:
1. Horizontal breakouts with a focus on rectangles and ascending triangles.
2. Clear boundaries with decisive breakouts.
3. Given we are in a US bull market, my focus will be on the long side.
4. Breakout to all time highs or 52 week highs.
5. Patterns that have more than a 12 week duration.
6. My maximum risk per trade will be less than usual.
7. I will be very quick to cut losses. In fact, I will probably not hold any losers going into the weekend.
I have seen two charts thus far that meet these requirements, CALX and SIVB. Both have already broken out and I will be looking to go long next week on a pull back.
