Crouching Tyger Burning Bright (or if you’re bullish…)

Jeff Cooper (of theStreet.com and Hit and Run Trading) came up with a formation called the "Crouching Tiger".  I called it the "Springboard".  Price breaks above the upper channel line at the end of a steady downtrend and then pulls back to re-test that breakout.  I first discovered this pattern in CSCO in 1994 and DELL in 1996 and both those instances launched those stocks into the stratosphere. 

Dell_springboard_1995

The reason I bring it up is because the NYA is tracing out a Crouching Tiger/Springboard right now on the daily charts. 

Nya_crouching_tiger_051205

The risk with the pattern is that it can continue to fall along the upper channel for longer than you think.  Therefore, it’s not a no-risk proposition. 

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