GOK is another Dragon (flagpole and flag) which appears to be ready.

The neck appeared on 8/26 and has developed a nice pennant. The neck is 1.64 long. Applying Bulkowski’s factors the price should rise 0.90 (55% of the neck) which would put the target at 6.45. Based on this, the profit would be 0.90/5.55 or 16% (assuming that the entry was at the top of the neck, 5.55). However, the next strong resistance is at about 7.80, in which case the profit would be (7.80 - 5.55) / 5.55 or 41%.

I set my stops at 2.5 times the price deviation averaged over the past ten days. For GOK this is 2.5 X 0.26 or 0.65. The trailing stop would set at 5.65 minus .65 or 4.90. The risk would 0.65 / 5.55 or 12%.

Case 1. The profit (assuming Bulkowski’s factor) would be 16%
Case 2. The profit (assuming the strong resistance) would be 41%

The Profit/Risk factor
Case 1. 16% / 12% or 1.08
Case 2. 41% / 12% or 3.42

There are two possible relatively safe entry points
     Wait until the price has cleared the top of the Dragon’s neck (5.55 plus 0.01)
     Enter after the price has broken out of the pennant