That's because RBS is forming a textbook ascending triangle pattern. The ascending triangle is a setup that's formed by a horizontal resistance level to the upside (in this case at $9.25) and uptrending support below shares. As RBS bounces in between those two significant price levels, shares are getting squeezed closer and closer to a breakout above that $9.25 ceiling. When the breakout happens, traders have their buy signal. At first glance, you may notice that there are a lot of gaps in the price chart for RBS -- these gaps, called suspension gaps, are just the result of off-hours trading on the London Stock Exchange. They can be ignored for trading purposes. Waters Corporation We're seeing the same setup right now in shares of $7.3 billion analytical instrument maker Waters Corporation ( WAT). Waters has been trending lower for much of the last two quarters, but it looks like shares bottomed at the start of the summer -- the ascending triangle would officially break WAT out of that range. For WAT, the resistance level in play comes at $86 -- when this stock prints above that level, traders have a buy signal. Whenever you look at a price chart, it's important to think in terms of buyers and sellers, not just shapes; after all, patterns like the ascending triangle don't work because of magic or geometry. Instead, it all comes down to supply and demand in the market. That resistance level at $86 is a price where there's historically been a glut of supply of WAT shares that has overwhelmed buying pressure. In other words, it a price where sellers were more eager to sell and take gains than buyers were to keep buying. A breakout above $86 means that increasingly eager buyers have absorbed the excess supply, so it makes sense to jump in and buy. When you do, keep a tight stop. Kimberly Clark Corp.Kimberly Clark Corporation ( KMB) is showing traders an interesting setup of its own right now. Shares of KMB spent the first half of this year rallying, but when the broad market corrected lower, KMB didn't -- instead, it corrected sideways for the second half of the year. That's a big signal that Kimberly Clark is showing off some outsized relative strength right now.