Chapter 3 Definitions, Structures, & Examples
©
Nirvana Systems Inc.
3-33
Profiting with Chart Patterns
Consolidation: Sherwin-Williams
This example shows a very well-formed Flag Continuation Consolidation on
Sherwin- Williams (SHW).
To find the
anchor
for this Consolidation,
start with the
width, which is approximately a month and a half from early September to the
beginning of October. Go back in the chart and you will find the low point at $220,
almost precisely. Using the Eights scale I go from high of the range to the low. This
allows us to stay in through some pull backs but ultimately
was stopped out for a
small gain of 3%.
Figure 3-33.
Consolidation Shown on the Chart for Sherwin-Williams