We'll cover more level 2 in Module 2. This was a buy as soon as it broke through its resistance at 42 on decent volume. This sell signal tells you it's time to take your profits and run. Easy money . When it did, it ran up way too fast for most of us to get on board with.
Triangles are one of the easiest and most profitable plays to spot.
The buyers keep raising the lowest price they'll pay for the stock, while the sellers keep the price at the same resistance level. Finally, the point of the triangle narrows and a big price movement occurs , either up or down. Buy off support in the channel and use trailing stops to lock in profit. See the red line in the chart to the right. These types of plays happen routinely in the market.