LLY — "Buying the Echo" Reclaim-Breakout Study SIGNAL ACTIVE
Trigger: new ATH close  +  ≥2 prior ATH closes in trailing 60 sessions  +  ≥5 sessions since last ATH ("the pause is the filter")  ·  75 analogs since 1993  ·  Live setup: June 2026 reclaim of the Nov 2025 highs  ·  Data through August 31, 2026  ·  Updated August 31, 2026 · 6:30 PM ET
Total Analogs
75
41 post-2014 regime
Day 1-2 Hit Rate
52–45%
the "buy the breakout" trap
20-Session Median
+1.8%
59% hit rate
60-Session Median
+5.4%
67% hit rate
Structural Skew
1.3 : 1
+4.6% up vs -3.6% down (median)
Live Setup
Jun 2026 Reclaim
ATH closes May 28 & Jun 5/8/11 · last strict analog Aug 19, 2026
Live Trade Tracker — the current setup laid over every historical analog
Each faint line is one of the 75 historical Echo analogs, indexed to its entry (green = finished higher at day 60, red = lower); the dashed line is the analog median with its 25th–75th-percentile band. The bold blue line is the live trade — entered at the Aug 19, 2026 reclaim — tracked day-by-day on top. As of day 8, it is -9.7%, running BEHIND the analog median of +0.0% at the same point. The analogs' median lands near +5.4% by day 60. Note the live entry is the current June-2026 reclaim, an extended-pause variant — so read it as the live expression of the pattern, not a strict in-sample analog.
The True Edge: Slow Positive Drift — median + percentile bands vs unconditional baseline
Hit Rate by Session & Mean Edge over Baseline — the day 1-2 chop zone is visible on the left
Distribution of Outcomes at 20 and 60 Sessions — all historical analogs
Max Upside Excursion vs Max Drawdown (within 20 sessions of signal — the option trade window) — every analog shown
LLY Full History with Every Echo Signal Marked
Most Recent 25 Signals — Forward Returns & Excursions
DateEntry Price +5d+20d+60d Max Up (20d)Max DD (20d)
2026-08-19 $1,280.34 -7.1% -1.9% -9.7%
2026-07-07 $1,233.79 -6.7% -9.7% -1.2% -9.7%
2026-06-26 $1,206.39 -0.7% -0.9% +2.3% -5.1%
2024-08-20 $936.85 +0.5% -4.7% -14.5% +1.1% -5.1%
2024-05-21 $790.97 +1.0% +10.3% +15.0% +11.0% -0.0%
2024-03-01 $768.93 -2.6% -2.8% +3.5% +1.3% -6.1%
2024-01-29 $633.02 +9.5% +18.8% +13.7% +21.5% -0.0%
2024-01-05 $607.06 +3.9% +14.2% +25.7% +14.2% +0.8%
2023-11-08 $606.51 -4.8% -4.8% +14.1% -1.0% -5.5%
2023-10-11 $592.94 +0.3% +2.3% +3.6% +2.3% -8.5%
2023-08-08 $509.87 +5.0% +7.6% +6.5% +7.6% -0.0%
2023-06-05 $434.27 +0.2% +4.8% +23.6% +5.6% -1.8%
2022-11-30 $360.63 +0.2% -1.1% -15.9% +1.0% -3.6%
2022-11-07 $353.80 -2.2% +1.2% -6.9% +2.9% -3.9%
2022-09-28 $324.06 -0.8% +7.0% +9.6% +7.0% -3.8%
2022-07-06 $318.92 -2.3% -4.9% +0.3% +0.4% -4.9%
2022-06-24 $314.54 -0.3% +1.8% -7.0% +1.8% -2.5%
2022-05-26 $302.79 -3.8% +4.4% +0.9% +4.4% -8.1%
2022-03-28 $280.79 -0.1% -3.0% +7.6% +6.9% -4.4%
2021-07-21 $226.03 +3.9% +13.5% +0.1% +15.3% +0.5%
2021-07-02 $222.86 +0.9% +5.4% -5.0% +5.4% -1.1%
2021-01-11 $175.60 +6.7% +8.5% -1.4% +14.4% -3.8%
2020-06-30 $153.51 +3.0% -1.5% -8.9% +3.0% -2.8%
2020-06-16 $153.07 -2.7% +1.1% -10.2% +3.3% -4.1%
2020-04-14 $140.63 +1.0% +4.4% +10.7% +7.8% +0.0%
Forward Probability Table — conditional on Echo signal vs unconditional baseline
HorizonN MeanMedian25th pct75th pct Hit RateBaseline Hit Mean EdgeHit Edge
Day 1 75 -0.1% +0.1% -1.1% +0.9% 52% 51% -0.2% +0.6%
Day 2 75 -0.2% -0.2% -1.6% +0.9% 45% 52% -0.3% -6.9%
Day 3 75 -0.0% +0.3% -1.5% +1.5% 52% 53% -0.3% -1.0%
Day 5 75 +0.5% +0.2% -1.9% +2.7% 55% 54% +0.1% +0.3%
Day 10 74 +0.8% +0.5% -2.4% +3.6% 53% 56% +0.1% -2.8%
Day 15 74 +1.2% +1.0% -1.5% +4.6% 61% 57% +0.0% +4.1%
Day 20 74 +1.4% +1.8% -2.5% +6.2% 59% 58% -0.1% +1.7%
Day 30 74 +1.9% +2.0% -3.1% +8.0% 55% 59% -0.5% -3.6%
Day 40 73 +2.0% +2.1% -5.5% +9.1% 59% 62% -1.1% -2.9%
Day 50 72 +2.9% +2.7% -5.4% +10.6% 60% 63% -1.0% -3.0%
Day 60 72 +4.1% +5.4% -5.0% +13.1% 67% 63% -0.5% +3.4%
💰 The "Take-It" Trade-Management Plan — Profit-Taker & Loss-Taker

Two mechanical scale-out overlays on the same trigger. Enter 100% within two days of the signal, then manage the position in tranches — 20% / 30% / 30%, with the final 20% always exiting at the end of the study window.

Where the deviations come from. For every completed historical precedent we measure how far the trade travelled in your favor (its Maximum Favorable Excursion). The three profit deviations span that favorable-outcome distribution — a low, median and high reading of how far these trades historically ran. (For thin samples these are the literal weakest / typical / strongest outcomes; for larger samples they are robust quartiles, so one outlier can't set the rungs.) The three loss deviations are the exact mirror of the profit deviations — the same levels flipped below the entry, so a +4% first take-profit pairs with a −4% first stop. It's a symmetric bracket. A rung only fills if price actually trades there; unfilled tranches exit with the balance at the window close. Mirrored for shorts (the profit-taker buys the name back lower; the loss-taker covers higher).

⚠️ Small-sample caveat. With only a handful of completed precedents these levels are illustrative, in-sample anchors — a disciplined way to turn "what this pattern historically did" into entry, take-profit and stop levels, not a statistically validated system. The live bracket is the payoff, not the backtest averages.

LLY Echo (reclaim breakout) — the bracket ladder & where the live LLY trade stands
RungReturnPriceActionLive status
Profit · 3rd dev+17.7%$1,465sell 30%pending
Profit · 2nd dev+11.4%$1,387sell 30%pending
Profit · 1st dev+3.6%$1,290sell 20%pending
● Entry0.0%$1,244buy 100%Day 7
Loss · 1st dev-3.6%$1,199cut 20%● cut
Loss · 2nd dev-11.4%$1,102cut 30%pending
Loss · 3rd dev-17.7%$1,024cut 30%pending
● Live LLY Echo (reclaim breakout): in at $1,244, now -7.0% (Day 7; peak +0.9%, trough -7.0%). Profit-taker: 0% scaled out — next take-profit → 1st dev $1,290 (+3.6%). Loss-taker: 20% cut — next stop → 2nd dev $1,102 (-11.4%).
LLY Echo (reclaim breakout) — both ladders across every historical precedent
Signal datePeak (MFE)Trough (MAE)Buy & hold Profit-takerP-devsLoss-takerL-devs
1994-01-18+0.6%-19.8%-19.8%-19.8%-13.4%
1994-12-21+10.1%-1.0%+10.1%+8.8%+10.1%
1995-01-23+21.7%-0.8%+15.7%+12.6%+15.7%
1995-01-31+19.6%-1.1%+15.0%+12.5%+15.0%
1995-02-24+17.4%+0.0%+11.1%+9.7%+11.1%
1995-03-14+14.1%+0.0%+12.2%+10.2%+12.2%
1995-04-13+2.5%-9.5%-0.3%-0.3%-0.9%
1995-08-28+29.6%+0.0%+24.7%+14.4%+24.7%
1995-09-14+21.5%+0.0%+19.9%+13.5%+19.9%
1995-10-05+23.0%-0.5%+16.2%+12.7%+16.2%
1995-10-12+21.5%+0.0%+6.5%+10.8%+6.5%
1995-10-25+16.3%-2.7%+7.5%+7.9%+7.5%
1995-11-15+29.4%-1.6%+29.4%+15.4%+29.4%
1995-12-06+29.4%-1.6%+29.4%+15.4%+29.4%
1995-12-15+28.1%-6.4%+17.2%+12.9%+13.0%
1996-01-31+17.3%-3.4%+2.3%+5.3%+2.3%
1996-02-23+8.2%-11.8%-4.6%-3.0%-6.5%
1996-03-05+3.7%-15.6%-0.6%+0.3%-4.4%
1996-11-05+14.1%-5.6%+14.1%+11.2%+10.6%
1996-11-25+23.9%-5.2%+23.9%+14.3%+18.4%
1996-12-19+22.9%-6.0%+12.8%+12.0%+9.5%
1997-01-14+19.2%-1.3%-1.3%+9.2%-1.3%
1997-01-30+8.8%-10.0%+1.0%+1.5%+0.1%
1997-07-01+10.6%-7.6%+10.1%+8.8%+7.3%
1997-09-22+14.5%-1.6%+11.4%+9.9%+11.4%
1997-10-21+6.6%-8.1%+3.2%+3.3%+1.8%
1997-12-29+2.9%-13.9%-13.7%-13.7%-11.0%
1998-09-15+17.5%-9.0%+12.3%+10.3%+9.1%
1998-10-30+14.4%-6.9%+14.4%+11.4%+10.8%
1998-11-20+6.4%-14.8%+6.4%+5.9%-0.9%
1999-01-28+4.3%-22.0%-15.4%-11.6%-12.6%
1999-02-22+1.0%-24.4%-21.2%-21.2%-13.7%
1999-03-05+0.0%-30.9%-27.7%-27.7%-15.0%
2000-08-01+1.7%-36.7%-17.8%-17.8%-13.0%
2014-11-28+6.3%+0.0%+3.2%+3.3%+3.2%
2015-05-28+12.6%-1.5%+2.9%+5.6%+2.9%
2015-06-09+6.8%-5.3%-1.3%-0.3%-1.8%
2015-07-07+3.7%-9.8%-1.8%-0.7%-2.2%
2015-09-17+0.0%-13.0%-3.7%-3.7%-6.0%
2017-12-13+1.3%-14.2%-8.6%-8.6%-8.4%
2018-09-07+12.0%-0.8%+10.0%+9.2%+10.0%
2018-09-28+10.8%-1.6%+5.4%+5.1%+5.4%
2018-11-19+7.5%-7.2%+7.5%+6.7%+5.3%
2018-11-29+9.2%-10.2%+9.2%+8.1%+6.6%
2019-01-17+13.0%-1.4%+3.4%+5.9%+3.4%
2019-01-31+9.0%-4.2%-2.7%-1.4%-2.9%
2019-02-14+7.0%-6.6%-6.2%-4.2%-5.7%
2019-03-25+0.0%-14.2%-11.3%-11.3%-9.8%
2020-01-07+10.2%-10.5%+5.0%+4.7%+3.3%
2020-01-30+17.3%-14.3%+13.2%+10.8%+2.5%
2020-04-14+12.4%-5.9%+8.6%+8.4%+6.1%
2020-06-16+5.7%-8.1%-7.0%-4.9%-6.3%
2020-06-30+3.6%-10.0%-7.5%-7.5%-6.8%
2021-01-11+19.0%+0.0%+3.6%+10.2%+3.6%
2021-07-02+16.2%-5.6%-1.8%+3.2%-2.2%
2021-07-21+14.7%-6.8%+0.1%+4.2%-0.7%
2022-03-28+13.3%-3.3%+13.3%+10.8%+13.3%
2022-05-26+2.5%-10.9%-1.1%-1.1%-1.6%
2022-06-24+1.3%-9.1%-9.1%-9.1%-8.0%
2022-07-06+2.3%-9.3%-1.1%-1.1%-1.6%
2022-09-28+13.9%-2.6%+11.8%+10.1%+11.8%
2022-11-07+2.5%-9.6%-7.7%-7.7%-6.8%
2022-11-30+1.2%-15.7%-14.9%-14.9%-11.6%
2023-06-05+25.3%-1.9%+25.3%+14.5%+25.3%
2023-08-08+17.4%-0.9%+10.5%+9.4%+10.5%
2023-10-11+2.7%-9.3%+2.6%+2.6%+1.4%
2023-11-08+22.9%-3.4%+22.9%+14.1%+22.9%
2024-01-05+26.8%-0.4%+22.9%+14.1%+22.9%
2024-01-29+23.1%+0.0%+12.6%+12.0%+12.6%
2024-03-01+2.6%-8.5%+2.6%+2.6%+1.4%
2024-05-21+18.4%-3.8%+15.0%+12.5%+11.2%
2024-08-20+0.8%-18.4%-17.4%-17.4%-13.0%
n=72 completed precedents · profit-taker avg +3.3%, loss-taker avg +4.0%, buy-&-hold-to-window-end +4.3%. ● = deviation reached, ○ = never reached (that tranche exited with the balance at the window close).
LLY Echo (reclaim breakout) — laddered exits vs buy-&-hold
Signal Definition — "The Pause is the Filter"

The Echo pattern isolates a specific flavor of all-time-high: a reclaim breakout. Three conditions must hold simultaneously: (1) the current session closes at a new all-time high; (2) at least 2 prior ATH closes occurred in the trailing 60 sessions — the stock was recently in price discovery; and (3) at least 5 sessions have elapsed since the last ATH close — a genuine pause occurred. Pattern recognition that ignores the pause lumps dense, grinding melt-ups together with consolidation breakouts. This filter isolates the reclaim. Over 1993–present (8,473 sessions), the condition has fired 75 times (41 in the post-2014 pharma regime), most recently on Aug 19, 2026.

The "Buy the Breakout" Trap

The reflexive momentum trade gets chopped before it works. Day-1 hit rate is 52% and day-2 is 45% — statistically no better than a coin flip, and at-or-below the unconditional baseline. Buying the immediate breakout candle while paying elevated breakout-day implied volatility mathematically guarantees negative expectancy in this first window. The front-end chop is a feature of the pattern, not a bug.

The True Edge — Slow, Positive Drift

The edge bypasses the front-end chop entirely and accumulates over 4 to 8 weeks. At 20 sessions the conditional median is +1.8% with a 59% hit rate (baseline: 58%). At 60 sessions the median reaches +5.4% with a 67% hit rate (baseline: 63%). The expectancy curve steadily outstrips the baseline before normalizing around week eight.

Honest caveat — drift contamination: LLY exists in a secular uptrend, so a meaningful share of the raw return is the stock's inherent upward drift, not the pattern. The pattern's true alpha contribution is purely entry timing following a pause, combined with a highly favorable risk shape. It is not a magic directional signal.

Structural Skew — 1.3 : 1

Within 20 sessions of the signal (the option trade window), the median max drawdown is -3.6% (5th percentile: -11.2%) against a median max upside excursion of +4.6% (95th percentile: +13.6%). A contained, knowable typical heat against a wider, highly probable upside. The rare but severe left-tail events dictate that downside risk must be structurally capped — which drives the trade expression.

The Current Setup — June 2026 (Extended-Pause Variant)

LLY's prior price-discovery run ended Nov 25, 2025 ($1,106 close). After a ~six-month pause, the stock reclaimed all-time-high territory with an ATH close on May 28, 2026 ($1,127), followed by confirming ATH closes on Jun 5, Jun 8, and Jun 11 ($1,161). The AlphaQuery study (published Jun 4, 2026) flags this as a live Echo trigger.

One honest flag: the strict backtest definition requires the prior ATH cluster to sit within the trailing 60 sessions — pauses of roughly 1 to 12 weeks. The current pause ran ~123 sessions, making this an extended-pause variant of the pattern rather than an in-sample analog. The most recent strict-rule analog fired Aug 20, 2024. The reclaim mechanics are the same, but the conditional statistics on this page are drawn from the shorter-pause population and should be applied with that extra grain of salt.

Trade Expression — Defined-Risk Options Only

Naked equity exposure and naked directional calls are hostile to this data signature. The environment demands expressions that finance the front-end chop while defining left-tail exposure:

Execution Logistics & Reality Checks