Flag Pattern - Continue Explosive Movement

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Bullish patterns of trend continuation
Bullish variants of such patterns appear in the middle of an uptrend.

1. Explosive movement is indicated by speed and dynamics of movement. Ie. When 20$ stock moving up 70 cents and more, behind 1-2 minutes.
2. This setup can be traded long, so in shorts. Beginners should focus on trading longs.
3. This pattern usually develops, because hot news is coming out. Consequently, the market has little impact on this pattern..
4. 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.
5. 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.
6. 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..
7. 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.
8. Any flag and pennant ends in "LowerHigh". It is easy to fool yourself when trading this setup., confusing "LowerHigh" with another explosive movement.
9. What do you expect from the next upward move? If the first explosive movement was 70s, then you should expect at least 35s on the next explosive move. But very often it happens that the second movement is equal to the first, or more than that.

Usually after strong explosive movements, we see a pullback on low volume. As seen in the example above, we have kickbacks in 10 Cents. look, how hard bids are hit on these pullbacks. After they stop hitting the bids, one of two things usually happens. Or sales will go to bids again. In this case, you can see, how a buyer collects many sellers in bids. This will usually lead to the next explosive upward movement.. In the second case, when prints to bids stop, other traders start putting bids higher. Thus, they create a problem for the buyer, and he starts moving his big bid. If the buyer's and other people's bids are not filled, they start buying in the market for the offer. If a stock meets resistance during an explosive move, this is not a good sign..

1. As soon as the flag is broken up, shop.
2. Place the best bid , if your bid is not filled and the stock starts to move up, buy at the market using the hotkey. slippage .05with a maximum.
3. If the stock does not move higher, the bids move higher and the offers go up with them., the share price does not change at the same time, then sell half of your position.

1. Look at the tape, to understand, where to sell you. If the stock prints slightly below your entry price, then try to get out on the offer.
2. Sell ​​half of your position, if the stock falls below the upper line of the flag.
3. If a stock moves up after you bought it, be ready to buy on the breakdown of the previous high. This can be clearly seen on 1 minute chart.
4. Buy only then, when the offers come to high.

This is an explosive pattern, and therefore the second movement should be fast enough. Get ready to sell, when the movement slows down or stops. If the stock is strong enough, it will not be difficult for you to sell by offer.

• If it is not possible to sell by offer, sell by bid.
• On the second explosive move, you should trade the stock, the same as on the first explosive movement.
• Look for consolidation.
• On the first and second movement, consolidations are similar.?
• Rollback size is the same, like the previous rollback?
• Is there an aggressive seller?

How do you find the top?

1. The stock may not break the top after the second consolidation.
2. What it looks like going down? Is there an explicit seller there?
3. Stock fell, below Haya past movement?

10. This plan is designed to provide a safe entry point to the stock., which just had an explosive motion.

11. You must wait for an upward movement after the first consolidation. Also, need to understand, that sales by the limiter on the offer, easily doable.

12. Most intraday flags and pennants do not consolidate for a long time. You should be ready to buy highs, if she does very little consolidation there(less than 3 minutes, sometimes 1 minute). The less consolidation, the greater the risk of entering a position.

Resume:

1. Explosive motion.
2. Small kickbacks.
3. Buy when pullbacks are broken.
4. Buy more over the top of the blast point
5. Come out if the second explosion is slow.
6. Take profit, when the second movement slows down or stops.