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The “Three Push” Pattern

I love spotting and trading a “Three Push” Pattern on a Daily Chart.

 

By Corey Rosenbloom

Why? It’s an easy-to-see pattern that develops over time and gives a high probability of a big win with minimal risk.

I posted last week about the “Three Push Pattern in Lululemon LULU” and the outcome.

Here’s another great example for you to study in Dollar General (NYSE:DG) and Dollar Tree (NYSE:DLTR):

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Be sure to study the prior post on LULU and our definition of the Three Push Pattern in the Education Section.

After an uptrend took price from $70 toward $100 through 2016 so far, price started to stall at $96.00.

What factors preceded the August crash and reversal?

A lengthy negative momentum and volume divergence undercut the new swing highs above $90.00.

Eventually the classic “Three Push Pattern” developed as momentum declined and the stock ran out of steam.

The next move – as the pattern forecasts – was a crash back down toward where the pattern began.

As always, not all patterns work this perfectly but when they do, use them as educational examples in your growing knowledge and trading resources.