When I get a list of stocks with flag formations through TradeFinder, how can I choose the best candidates for trading?
The key is finding the neatest flags and consolidations, supported by Guy's patented OVI, and the Big Money Footprints.
The other indicators such as open interest, trending months are nice to have as additional filters if the initial results list is overwhelming.
Therefore, it is recommended that in the first instance, you use as few filters as possible to find the neatest flags and then add other filters to narrow your results further.
Our most successful traders use a combination of discretion and the software.
Related Articles
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 ...
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 ...
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 ...
Who can access the OVI tools and software?
Because the OVI is a patented proprietary indicator, OVI based tools and software are exclusive to our members. Access to the various OVI tools and software will differ based on the stocks and options memberships and services chosen.