The Yum-Yum continuation pattern uses range expansion to confirm break-outs that continues the trend.
Learn: Yum-Yum Continuation Pattern
Traders of this pattern must buy at the top of a bull trend and sell at the bottom of a bear trend. For intrepid traders only.
Yum-Yum patterns on weekly charts are opportunities to scale into an investment position. Unfortunately, you won’t be lowering your average cost.
1. Yum-Yum Pattern on COL Weekly
- COL has been trending upwards.
- It just broke out of the earlier swing high with a strong bullish bar.
- The range of the break-out is higher than its 10-period average.
To trade this Yum-Yum pattern, buy as price breaks above this wide range bar. The break-out must take place within the next three weeks.
2. Yum-Yum Pattern on CTAS Weekly
- CTAS is in a bull trend, which is a requisite for a continuation trade.
- Two weeks ago, CTAS started the up swing with a bullish reversal bar.
- The wide range break-out bar confirmed the bullish momentum and completed the Yum-Yum pattern.
3. Yum-Yum Pattern on DTV Weekly
- DTV is in a clear upwards trend.
- The recent pullback started forcefully with a bearish outside bar. However, this outside bar failed as price continued higher.
- Moreover, the break-out bar was a bullish trend bar with a wide range. This sturdy break-out bar is the signal bar of the Yum-Yum pattern.
Learn: Trend Trading Strategies
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