Real-time pattern trading is the easiest way to find entry and exit prices if you can scan thousands of stocks and ETFs within minutes. It is definitely impossible for humans. Artificial Intelligence (A.I.) not only discovers these patterns, but also checks if they worked out well in the past. Knowing the success rate in the past allows A.I. to establish the odds of success in the future.
The Dead Cat Bounce pattern appears when a security's price falls quickly but has a temporary “v-shaped” recovery before resuming its downward trend. The temporary bounce (from point 2 to point 3) may be explained by shorters covering their positions or buying by investors who think the price has already reached a low point.
It is important to wait for the confirmation move, which is when the price breaks below the low where the dead cat bounce occurred (point 2).
If the price breaks out below the price where the dead cat bounce occurs, then day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the pattern’s height by measuring the initial fall (from points 1 to 2). Then calculate the target price by subtracting the pattern height from the breakout price level. When trading, wait for the confirmation move prices falling below the breakout level.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
Time frames No matter your trading strategy (day trading, swing, etc), we have patterns that will be ready to trade.
KB - KB Financial Group Inc - ADR
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 61% |
| TARGET (EXIT) PRICE | 45.58 USD |
| BREAKOUT (ENTRY) PRICE | 44.94 USD |
| DISTANCE TO TARGET PRICE | 1.41% |
| EMERGED ON | Aug 13, closing price |
| WITH CONFIDENCE LEVEL | 61% |
UVSP - Univest Financial Corp
| STATUS | Confirmed |
|---|---|
| CURRENT CONFIDENCE | 63% |
| TARGET (EXIT) PRICE | 27.38 USD |
| BREAKOUT (ENTRY) PRICE | 26.85 USD |
| DISTANCE TO TARGET PRICE | 2.09% |
| EMERGED ON | Aug 13, 03:00 PM (EDT) |
| WITH CONFIDENCE LEVEL | 55% |
BANC - Banc of California Inc
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 53% |
| TARGET (EXIT) PRICE | 18.01 USD |
| BREAKOUT (ENTRY) PRICE | 17.73 USD |
| DISTANCE TO TARGET PRICE | 1.83% |
| EMERGED ON | Aug 13, 03:00 PM (EDT) |
| WITH CONFIDENCE LEVEL | 55% |
WCC - Wesco International, Inc.
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 49% |
| TARGET (EXIT) PRICE | 116.80 USD |
| BREAKOUT (ENTRY) PRICE | 115.21 USD |
| DISTANCE TO TARGET PRICE | 1.54% |
| EMERGED ON | Aug 13, 11:00 AM (EDT) |
| WITH CONFIDENCE LEVEL | 56% |
PNFP - Pinnacle Financial Partners Inc.
| STATUS | Emerged |
|---|---|
| CURRENT CONFIDENCE | 34% |
| TARGET (EXIT) PRICE | 95.34 USD |
| BREAKOUT (ENTRY) PRICE | 94.07 USD |
| DISTANCE TO TARGET PRICE | 1.77% |
| EMERGED ON | Aug 13, 10:30 AM (EDT) |
| WITH CONFIDENCE LEVEL | 46% |
