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 profits.
Typically, we put a stop under the (bull) or over the (bear) flag or consolidation, if you're particularly unsure then you can get out of the trade if the stock breaks out and comes straight back into the flag again.
Your losses will be small, and controlled, but you will have more trades stopped out in that way.
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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 do you consider a "properly constructed breakout?"
What we mean by that is a breakout that is preceded by a flag pattern, consolidation, or a clear support (or resistance) area. This should be accompanied by at least a couple of the Big Money Footprints For any trade we need to know exactly where ...
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 ...
How do we know that a flag has formed fully and that a breakout is imminent, i.e how many candlesticks denote a typical flag?
The flags (consolidation patterns) we like are generally 3-4 bars (days) long. Sometimes they can go for a bit longer, but that’s a good ballpark. We’re looking for easily recognisable, neat, and compact flags, where the difference between entry and ...
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 ...