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PatternDNA Pattern of the Week: GGGGB

Jan. 19, 2011 9:12 AM ETAFL, KODK, VZ, ABT2 Comments
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This week's Pattern appeared in Abbott Laboratories (ABT). It is comprised of four very similar bearish days and one bullish day at the end. 

Under the five Match settings it returned the following

% Win
% Win
% Win
Return / Trade
Weakest 181 52 62 59 6.5% 100+
Weak 144 51 57 55 5.9% 95
Neutral 98 47 52 55 7.4% 54
Strong 43 40 52 50 8.3% 25
Strongest 8 55 66 50 11.0% 4

With the exception of the Strongest setting there was a gradual shift to a bearish short term outlook, despite the improved bullish performance (i.e. Average Return Per Trade) with respect to the Long Term Outlook. In the case of the Strongest match, 87.5% of the Patterns closed with a profit of 11.0% per trade and this was still a respectable 79.1% win percentage for the 43 Matches at the Strong Level with an Average Return Per Trade of 8.3%.

The Average Return Per Trade assumes an initial stop of 10% with a raised stop to 5% of the price reached after a 15% gain. The ultimate Profit Target is 25%.

The Four Stocks of the Strongest Match were: Aflac Incorp (AFL), Eastman Kodak (EK), Verizon Corp (VZ) and Abbott Laboratories (ABT).

If you would like to see more matching stocks you can Upgrade to Premium PatternDNA and run Market Scans for Patterns in S&P 500 stocks. 

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