I was wondering once Guy checks the top and bottom of the flag how he determines at what level he decides to enter the trade? Sometimes it is 7 ticks above/below the flag other times it could be 9 or whatever.
We try to avoid being caught out by past support and resistance areas.
Also we look for some clearance beyond the flag itself.
It can vary according to factors such as other S&R, and whether we're near a round, decade, or century number, which we also try to avoid.
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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 ...
How do I spot 'double tops or double bottoms', before they happen?
Anticipating is a double-edged sword! You can anticipate support or resistance as the stock approaches the zone. If you're already in a trade we can use them as a profit target or stop loss. If you're in a bullish trade then you'd have your (first) ...
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?
Yes, it's typically where it stops being a flag or consolidation, becomes range bound, and other opportunities look better. Also, watch to see if the OVI remains in the direction of the dominant trend, and the presence of Big Money Footprints, ...
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 ...
The flag itself looks like a flag except the flag is rising with the bull flagpole (or falling with the bear flagpole), should I trade it?
No. We do not trade ascending or descending wedges because we have no clear entry point, and cannot manage the trade.