Shakeouts are easy to see on the PnF charts. Take MTXX for example:
A shakeout pattern is when a stock makes two tops, then breaks a double bottom. This rids the stock of weak holders. The buy signal is on a three box reversal to the upside ($16.50). The shakeout is completed when the triple top is broken ($18.50).
(Currently, MTXX has already reversed to the upside and is in a column of X’s, but the shakeout hasn’t been completed yet).
These are nice patterns to look for and trade, so you might want to add this to your arsenal of strategies.If you enjoy the content at iBankCoin, please follow us on Twitter