Summary
Cathy Stacey (PSE) provides the authoritative source definition of the Mexican Pete pattern in response to Floyd’s question about a fulsome pattern definition. The pattern comes directly from W.D. Gann’s Truth of the Stock Tape, page 67. It is an ascending triangle — a horizontal resistance top with progressively higher lows. PSE has a dedicated staff member scanning for Mexican Pete opportunities.
Key Claims
- mex-pete-definition-cathy-stacey (2026-03-20): “It’s essentially an ascending triangle. Horizontal top meeting resistance with higher lows.” — confidence: high
- mex-pete-definition-cathy-stacey (2026-03-20): “The source definition is on page 67 of Gann’s Truth of the Stock Tape.” — confidence: high
- mex-pete-definition-cathy-stacey (2026-03-20): “Best thing is to look at daily 52-week highs, make a list and monitor for the pattern building.” — confidence: high
- mex-pete-definition-cathy-stacey (2026-03-20): “PSE has a new staff member scanning for Mexican Pete opportunities.” — confidence: high
The Pattern (from Cathy’s description)
Draw as Gann describes in Truth of the Stock Tape p.67:
- Upper boundary: Horizontal resistance line (price hits same level multiple times, can’t break through)
- Lower boundary: Rising trendline (higher lows each pullback)
- Shape: Ascending triangle — price coils toward the resistance
- Breakout: When price finally breaks above horizontal resistance = entry signal
Additional Context (from March 18 BBI session notes)
- The US 30-year Treasury Bond Yield weekly chart was shown as an example of a Mexican Pete pattern breakout setup (as of March 18, 2026)
- PSE also documented a “reverse Mex Pete” on private credit stocks — descending triangle (lower highs, horizontal support) as a breakdown pattern
Source: Gann Reference
- Book: Truth of the Stock Tape by W.D. Gann
- Page: 67
- Pattern name used by PSE: “Mexican Pete” or “Mex Pete”