We continue to publish material from the archives Bullish patterns of trend continuation Bullish variants of such patterns appear in the middle of an uptrend. Explosive movement is indicated by speed and dynamics of movement. Ie. When 20$ stock moves up 70 cents and more, behind 1-2 minutes. This setup can be traded long, so in shorts. Beginners should focus on trading longs. This pattern usually develops, because hot news is coming out. Consequently, the market has little impact on this pattern.. What does this type of movement look like on a chart? On the 1 minute chart, you will see a large vertical explosive bar. The following 1-3 bar will be much smaller. If, after an explosive movement, the stock has a small pullback and begins to move in a small range, then in most cases, after this range, the stock will go up. You should never enter a trade on an explosive vertical bar. Wait for that moment, when the stock calms down and begins to consolidate. This will give you the best risk to reversal ratio.. This pattern indicates a strong upward momentum. Usually a market order for an offer is entered into this setup., and limit orders are also issued for the offer. Any flag and pennant ends in "LowerHigh". It is easy to fool yourself when trading this setup., confusing "LowerHigh" with another explosive movement. What do you expect from the next upward move? If the first …
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