Profiting with Chart Patterns book

Trend Line Break: Realty Income
The tend line break for Realty Income (O) is not quite so obvious, but the trend line 
still had four touches. We broke it near $51. You can follow the Eighths tool back up 
to about 55 and see how we stayed in the trade because we did not close below the 
second test of $55.
Figure 3-9.
Trend Line Break Pattern Shown on the Chart for Realty Income
This is the second example where we have doubled the Eighths tool. We stacked 
another Eighths tool on top of the original Eighths tool. That is why there are two of 
them, sixteen divisions in total. We just kept following the Eighths rule all the way up 
in the chart until the print of this e-book where we are still currently in trade.

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Chapter 3 Definitions, Structures, & Examples
©
 Nirvana Systems Inc.
3-11
Profiting with Chart Patterns
Trend Line Break: Goldman Sachs Group
This chart shows a very clear trend line on Goldman Sachs Group. The lower trend 
line was violated in mid August. This was an excellent place to go short. Our initial 
stop would be at the prior Eighths scale line which was $210.50. It fell all the way 
down and finally exited at about $185. That was good for a little more than a 8% 
move.
Figure 3-10.
Trend Line Break Pattern Shown on the Chart for Goldman Sachs Group

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Chapter 
3 Definitions, 
Structures, 
& 
Examples
Profiting with Chart Patterns
3-12
nirvanasystems.com
Trend Line Break: 3M
The following example shows a trend line break on 3M (MMM) to the upside. You 
can see that the line does not have to be perfect. It just needs to be approximately 
hitting highs in the chart going to the left.