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 or consolidation itself.
It can vary according to factors such as other Support and Resistance, and whether we're near a round, decade, or century number, which we also try to avoid.
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Can you elaborate on the importance of support & resistance in terms of the present & the past.
Support and resistance are important as it gives an indication of potentially how profitable the trade may be. If you have these close to your entry price or first profit targets, there is a risk that the stock will not be able to break past the ...
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, ...
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, which you manage by use of Guy's Dynamic Trailing Stop. When the markets are breaking out big time ...
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) ...
What does the OVI do?
Simply put, the OVI measures the flow of the big, smart money in the markets. It does this by monitoring the activity between buyers and sellers of options. You do not need to know anything about options trading to use the OVI. But by looking at ...