Chicago, IL – July 12, 2011 - Stocks in this week's article include Edwards Lifesciences Corp. (NYSE: EW), The Ensign Group, Inc. (NASDAQ: ENSG), MDC Partners, Inc. (NASDAQ: MDCA), Valeant Pharmaceuticals Int'l, Inc. (NYSE: VRX) and WGL Holdings, Inc. (NYSE: WGL). Kevin Matras screens for bullish chart pattern set-ups with the best fundamentals.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
One of my favorite patterns to trade is the Symmetrical Triangle. These are continuation patterns.
Continuation Patterns generally will continue in the direction of the trend. If the trend was up, and then pauses, the expected breakout would be to the upside. If the trend was down, the ensuing breakout would likely be to the downside.
Today, we're going to focus in on a bullish pattern.
The science behind this pattern is quite simple. The market has gotten a little ahead of itself and it needs to consolidate. Attempts to push higher are met with selling. And attempts to push lower are met with buying. Each new lower high and higher low is shallower than the last, until the chart pattern takes the shape of a right-sided triangle.
Eventually, the triangle resolves itself, and often with an explosive move in the direction of the preceding trend.
To screen for symmetrical triangle patterns, first define the size of the pattern by the length of time it took to develop. For example, a one-month pattern, or a two-month pattern, etc. Then put in the logic.
Here are the parameters for a 3-month long bullish symmetrical triangle pattern...
For the rest of this Screen of the Week article, please visit Zacks.com at: http://www.zacks.com/commentary/18182/
Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: http://at.zacks.com/?id=5529
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=5530
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=5531
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
More From Zacks.com