Flag Pattern - Continue Explosive Movement

We continue to publish material from the archives. Explosive movement is indicated by the 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, this setup is entered by a market order at …

Flag Pattern - Continue Explosive Movement Read more

Oil down :)

I read in the book of ancient sages that flags are the figures of the continuation of the trend and, usually, break through on the third touch. We wait…..

Day Trader Trading Styles

Range Breakout (Range break) This is the simplest and most common trading technique.. All a trader needs is find the range (base, consolidation, flat) and wait for it to break through in any direction. Trader doesn't care, in which direction the range will be broken. It is important for him to enter when the range breaks. Pattern Breakout (Breaking through the pattern (graphic figure)) In technical analysis of prices, there is a concept of a graphical figure or pattern. These figures include: triangle, flag, pennant, double bottom or top and so on. When a pattern is clearly formed on the chart, the trader will wait for the price to exit this pattern and start opening a position.

Scroll to Top