How the Sherlock’s Pipe Pattern Finds Sure-Fire Big Money Trades

ROKU was a long setup on the Hit & Run weekend report. My comment was, “Above 95 and sustaining targets 100 plus.”

The setup was based on two patterns:

1) A Rule of 4 Breakout. This is a breakout over a 3 point trendline.

2) The Rule of 4 Breakout existed in the context of a larger pattern I call a Sherlock’s Pipe.

Essentially, the Sherlock’s Pipe traces out the form of the pipe the famous detective Sherlock Holmes became known for.

A stock has a steep roll-over and swings back up, forming the left side of the bowl of the pipe.

It goes through a relatively brief consolidation and rallies to put in the right side of the pipe’s bowl.

Notice in the case of ROKU that the Rule of 4 Breakout was triggered in the midst of the ‘bowl’.

However, it was not until Thursday and Monday that ROKU’s price action validated the Rule of 4 Breakout.

Yesterday, Monday, ROKU came out.

Subscribers were triggered long at 95.34.

ROKU's relative strength on Monday was a blaring siren that the stock had an agenda higher.

Every time the market pulled back on Monday, ROKU dipped and bounced right back like a ball under water.

After the bell, ROKU re-stated earning’s expectations and the stock exploded 10 points higher.

This morning, ROKU is satisfying a projection given off the Square of 9.

From a low of 58, notice that an important 540 degrees up and opposite the 58 low is 112.50.

Purple arrow is 58 low
Green arrow is 112.50… straight across and opposite 58.
Notice that 360 degrees (1 square) up from 58 is 93.
When ROKU cleared 93 on Monday, it was in a strong position.
Tuesday morning it exploded to over 111

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