If the entry price of the flag or consolidation is hit, but then the market just starts moving sideways not hitting either entry or stop loss. Is there a point where I can say this is not the typical flag trader trade and just exit?

• Related Articles

• If the length of the flag starts to approach or exceed the length of the pole then its probably time to consider moving on?

  We typically like the flag to be a consolidation where the bars are tighter than what has gone on before. This description would seem to refer to a range bound stock forming a channel.

• What is a Flag Pattern?

  A flag is a consolidation pattern during a dominant trend and entails the price rebounding off 2 short term parallel trendlines. There is very rarely a 'perfect' flag shape, but what we are looking for is price consolidation. The flags can be in the ...

• Is it normal enough that after a trade is filled that it comes back into the flag (bull) and bounces along like that for quite a few days before it thinks about going back up through the original buy stop order level again?

  This is something that can happen. Ideally when the stock breaks out it keeps going, takes out our first profit target and then some more on top. When the markets are breaking out big time either way, then that's how we make our best windfall ...

• Is there a chance on a higher profit, if either the size of the flag, or the size of the consolidation is greater than a stock with a lesser size?

  You want to stick with neat looking flags or patterns where the consolidation or range of the pattern isn't too deep - otherwise there is too much distance (your 'Practical Risk') between your entry and optimal stop.

• The trades I have put on have not worked, I’ve made some losses, what am I doing wrong?

  The only way you can lose money with these methods (if applied correctly) is on a false breakout. In other words, you get triggered into a trade, and then it retraces and stops you out before P1. This scenario is highly unlikely if: A) The flag or ...