How the Triangle Pendulum Setup Works

Editor's Note: if you'd enjoy getting trades like this 5 days a week, consider this new Hit and Run Bundle.

Paul Tudor Jones taught me something important: don't be afraid to go back to a setup when it retriggers.

Let’s take a look at a ‘retrigger’ in Schrödinger (SDGR) that gave us a fast gain.

Last week, SDGR (which IPO'd in February) broke out of a broke out of a triangle and I alerted subscribers to take it long.

However, it quickly reversed and stopped us out.

The reversal triggered what I call a Triangle Pendulum sell pattern.

This is one of my favorite patterns because fast moves often come from false moves.

However, SDGR never followed through to the downside.

Instead, it jackknifed back up through its 50 day m.a. and back through the top of the triangle.

In so doing, it revalidated the original breakout and triggered a Double Triangle Pendulum — a potentially more powerful bullish signal.

This put it on our long radar going into the weekend.

Friday shaped up like a Pause Day, a consolidation day.

We were ready to pounce on any sign of strength on Monday.

Early Monday, SDGR pushed over Friday’s high and I alerted subscribers to take it long on the Hit & Run private twitter feed getting filled at 40.96.

It went on to trigger an Opening Range Breakout (ORB) which underpinned a trend day up.

A big move played out in spades with SDGR ramping to 48.48 at the bell — up 18% from the entry.

So again, don't be afraid to return to a setup if it retriggers — because as I like to say, the second mouse often gets the cheese.

Position in SDGR

Sick of Buy and Hold, Hit and Run:

99.999% of traders have never even seen the Square of 9... let alone understand its potential.

Do you dare to be different?