# Flags and Pennants



## bowman (19 April 2009)

I'm partial to trading these two consolidation patterns when they break to the upside and I thought I'd post some charts as I find them.

Not sure If people would prefer them in a specific thread or to post them in the Potential Breakouts thread?

Thanks.


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## beamstas (19 April 2009)

I would appreciate this 
(There is always something to learn)

I'd suggest keep it in this thread..
Then if someone wants to learn about these patterns it's all in one place

Brad


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## saiter (19 April 2009)

Some stuff on flags and pennants for newbies.


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## carmen (19 April 2009)

Im not really good at spotting these..Transurban is an awful looking chart but it looks like one formed Mar 13.


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## MRC & Co (19 April 2009)

There is no flag or pennant there Carmen.

Flags are great patterns though.


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## sammy84 (20 April 2009)

Potential pennant here. Volume has lowered recently to an acceptable level. I wouldn't take this trade however as it is too close to nearby resistance, prefer it when such patterns form just on top


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## bowman (20 April 2009)

Cheers guys, we're off and running.

SDL is forming into a nice pennant pattern and is quite liqiud. Previous attempts to break from this level have failed at .12c

Nonetheless there could be some daytrade/short term trade opportunities here, and possibly a more sustained move up as well.

Generally speaking I'm a little cautious this week as there's more earnings reports and housing stats due from the US, so I'm mostly in daytrade mode.

It wouldn't take much to knock the wind out of the sails of the current rally.


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## CanOz (20 April 2009)

For those with Amibroker here is a nice little "Pennant" scan....Enjoy

CanOz



> // Triangle search Extended
> 
> /*This scan/exploration extends the triangle search by Graham Kavanagh
> The original scans for triangles using Highest High AND Lowest Low over a 20 bar period,
> ...


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## nomore4s (20 April 2009)

CanOz said:


> For those with Amibroker here is a nice little "Pennant" scan....Enjoy
> 
> CanOz




Thanks CanOz, will have a play around with that.


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## bowman (20 April 2009)

Here's an interesting one to keep an eye on - CXY.

Broke up in late March from a Flag pattern and then broke down and retraced from a Pennant pattern.

Might find support at an old resistance level and consolidate and/or bounce again.


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## Wysiwyg (20 April 2009)

Really good education thread everyone. Excellent. 





.


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## sinajee (20 April 2009)

I agree with WYSIWYG, thanks for the input everyone.  GREAT STUFF:iagree:


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## jrobbo (20 April 2009)

I'm a newbie at this. but how about this one of Macquarie Comms Group:



John


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## skc (20 April 2009)

jrobbo said:


> I'm a newbie at this. but how about this one of Macquarie Comms Group:
> View attachment 29501
> 
> 
> John




Can't get anything that looks more like a flag.

However, MCG is the subject of a takeover bid at $2.50. If you trade this stock you are basically taking a view that someone will bid above $2.50. See the MCG thread in this forum. Current market prices below the bid price indicate people have doubts about the bid going ahead.

Also, it will be difficult to set limit order to trade any breakout. Chances are the price will simply gap up if there were to be announcement of a new bid. If you do want to play, make sure you have limit-stop orders so you don't chase too far.

Apologies for mixing fundamental views in a technical thread.


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## Johno (20 April 2009)

TOE


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## skc (20 April 2009)

saiter said:


> Some stuff on flags and pennants for newbies.




Thanks Saiter. What's the book?


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## sammy84 (20 April 2009)

Bought BTA today on the basis of a pennant. Took a conservative entry however by buying at the break of the high set a few days back. Did this because 1) Unsure about overall Market direction 2) Slight bearish divergence present and 3) There is some overhead resistance nearby at the 80c mark. 

The high close looks promising for tomorrow, so hopefully it gives the trade some room and it becomes 'free'.


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## saiter (20 April 2009)

skc said:


> Thanks Saiter. What's the book?




It's called Encyclopedia Of Chart Patterns, 2nd Edition by Thomas N. Bulkowski. You can find it on most torrent sites.


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## saiter (20 April 2009)

Flags in the current rally for the DJIA.


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## MRC & Co (20 April 2009)

Couldn't call that 3rd one a flag Saiter.

Bowman, nice posts, particularly the second one, noting we may find support at the previous resistance.  A good place to buy if we are in an uptrend previously.  

Along with double tops and bottoms, flags are my favourite 'traditional technical pattern'.


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## skc (20 April 2009)

saiter said:


> It's called Encyclopedia Of Chart Patterns, 2nd Edition by Thomas N. Bulkowski. You can find it on most torrent sites.




Thanks for the information. Looks like something that's both educational and good for occassions when I can't sleep.

Possibly a flag devloping for SDG?


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## Johno (20 April 2009)

Wysiwyg, 

Next time you want to take it upon yourself to be the self professed internet police, why not share the abusive private message you sent me for all the other good folk here to see so they can judge your true character for themselves. 

Lesson:

If you assume you know someone elses circumstances, you are doomed to failure. (that ones a freeby)

Have a nice life


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## Wysiwyg (20 April 2009)

Johno said:


> Wysiwyg,
> 
> Next time you want to take it upon yourself to be the self professed internet police, why not share the abusive private message you sent me for all the other good folk here to see so they can judge your true character for themselves.



My only request is to keep this thread informative and helpful. My pm was *not* abusive and this thread need not be further disrupted.

P.m. me to continue further dialogue.  Thankyou.


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## Johno (20 April 2009)

My apologies Wysiwyg,

I thought your PM called me a troll, and upon reading it a second it says "I assume you ARN'T a troll".

Still, I dont appreciate you moderating my posts and PM ing me about it. When your a moderator, I will take advice from you.

I wrote TOE, because i was on my out the door and didnt have time to post an entire chart. I can do so if you like.

Again I appologise, for the mis-interpritation of your PM.


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## weird (20 April 2009)

Trading a lot of these patterns, trade management is more of a factor , which includes entry price, and an incredible balance between all factors such as position sizing, initial stop and raising stops (perhaps the most complex part) and also profit target.

When I was originally investigating this pattern, I came across this also, note this is not a recommendation, just a comment of additional resources,

http://www.startraderreport.com/MSIndicatorKit/MSIndicatorKit.html


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## sammy84 (21 April 2009)

My BTA trade mention a while back broke its pennant today. However the overhead resistance identified earlier seems to be a problem. Volume was nice today however. Nonetheless a nice result for a down market day


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## CanOz (21 April 2009)

Some bearish divergence there?


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## beamstas (21 April 2009)

CanOz said:


> Some bearish divergence there?




I agree
Not being supported by a big heap of volume
Overhead resistance
Bearish Divergance

You'd expect that divergance to unwind in the near future? 

Brad


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## sammy84 (21 April 2009)

Bearish divergence is very evident, however as I am trading with the trend I ignore it. I actually like volume pattern, volumes died off nicely whilst the pattern formed and have picked up now on the break. Its the resistance I dont like, and todays close showed that others dont like it either. Not one of my best trades, but at least its 'free' now and anything can happen.


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## CanOz (21 April 2009)

sammy84 said:


> but at least its 'free' now and anything can happen.




Good point, i have a few like this myself, and i haven't even had time to look at them today, probably out at even i'd say.

CanOz


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## Wysiwyg (21 April 2009)

With an exit target, does anyone use the half mast method where the pennant is supposed to be at the half way point of a move? The target price being the length of the flagpole from the pennant breakout.

The daily bar on Sammy84`s chart surpasses the target comfortably.


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## CanOz (21 April 2009)

Wysiwyg said:


> With an exit target, does anyone use the half mast method where the pennant is supposed to be at the half way point of a move? The target price being the length of the flagpole from the pennant breakout.
> 
> The daily bar on Sammy84`s chart surpasses the target comfortably.




I don't use them (targets), but prefer a traling stop. I do sometimes use targets to calculate R/R but i normally eye ball it now. The pattern site can help with measured moves for all patterns Wys, www.thepatternsite.com

Cheers,


CanOz


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## saiter (21 April 2009)

An example of a failed penant (for now):


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## Wysiwyg (21 April 2009)

Righteo Canoz. Thanks.

------------------------------------
Some things I have read.

Is it not a general rule that if the price gets right to the point of convergence then the trend continuation probability is largely diminished?  

Is it not a rule of thumb that the likelihood of a breakout is more prominent about  2/3`s of the way along the triangle.


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## bowman (22 April 2009)

Here's a few more to keep an eye on.

Once again I'm only daytrading today. A drop on the DOW tomorrow would give me reason to suspect the bears may be back in business for a while.


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## sammy84 (22 April 2009)

Hey Bowman

Do you trade these patterns or just day trade in general? Will be interested to know if anyone day trades a break of such patterns, and what minutes charts they look at to find the preceding break. 

Sammy


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## bowman (22 April 2009)

Hi sammy

At the moment I am mostly daytrading due to the fact that I suspect this rally is pretty close to a reversal.

A month ago I was letting these pattern breaks run for a few days or whatever.

For these pattern breaks I don't use intraday charts, however I have other stocks that I daytrade regularly, and for these I use a 5 or 10 tick chart.

To find the patterns I manitain an extensive watchlist which I compile from each days top 100 movers, and also from a few scans, eg. a 'gap up' scan and a 'volume and % gain' scan.


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## MS+Tradesim (22 April 2009)

Potential...


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## CanOz (22 April 2009)

What about ABB? I had it up on a scan this morning...too busy to post it but i recall it was a flag.

CanOz


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## MS+Tradesim (22 April 2009)

Can, here's ABB...


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## CanOz (22 April 2009)

Hmmm, doesn't look like a convincing pattern there.

I'll run more scans later, and try and post a couple.

CanOz


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## MS+Tradesim (22 April 2009)

EXS. Not much liquidity. Might suit a smaller position size.


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## beamstas (25 April 2009)




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## Wysiwyg (25 April 2009)

Looks like MCG is about to blow.


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## bowman (26 April 2009)

MRC & Co said:


> Bowman, nice posts, particularly the second one, noting we may find support at the previous resistance.  A good place to buy if we are in an uptrend previously.
> 
> Along with double tops and bottoms, flags are my favourite 'traditional technical pattern'.




Cheers MRC. Just looked back and found your post and here is the current CXY chart. For me, support and resistance is probably the most important notion in TA.

I know it doesn't mean anything statistically but I had a look back over  the charts posted so far and we have had :

2 breaks to the downside
4 breaks to the upside
5 patterns still intact

I haven't included patterns that had already broken when they were posted.


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## jrobbo (26 April 2009)

Wysiwyg said:


> Looks like MCG is about to blow.




I posted the MCG flag on the first page, see skg's reply as to why it won't go any further.

Cheers


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## Wysiwyg (26 April 2009)

jrobbo said:


> I posted the MCG flag on the first page, see skg's reply as to why it won't go any further.
> 
> Cheers



 Okay, re-read, thanks.


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## MRC & Co (26 April 2009)

Yeh, nice re-post of the chart Bowman, demonstrates the point perfectly.  Most wouldn't watch for that, they would just be looking at the 'traditional pattern'.  

Support/resistance and trends are it for me.   

Cheers


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## bowman (27 April 2009)

Three from the mining sector.


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## bowman (27 April 2009)

It's not what you'd call a tight pattern but INL might be worth watching for a move to the upside.


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## sammy84 (27 April 2009)

sammy84 said:


> View attachment 29514
> 
> 
> Bought BTA today on the basis of a pennant. Took a conservative entry however by buying at the break of the high set a few days back. Did this because 1) Unsure about overall Market direction 2) Slight bearish divergence present and 3) There is some overhead resistance nearby at the 80c mark.
> ...




Turned out to be a very good trade  It goes to show the beauty of free trades.


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## nomore4s (28 April 2009)

One worth watching - only problem is low volume could get alot of slippage on entry & exit. Also some resistance @ $1.70ish

Nice triangle at top of strong trend.


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## sammy84 (28 April 2009)

Pennant long way up the flag pole here. Some minor resistance over head but nothing to worrying. The only thing I dont like are the high volumes since the continuation has been forming. What do others make of the volume?

Sammy


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## bowman (28 April 2009)

The volume seems to be decreasing as the pattern plays out, which is what usually happens - similar to triangles. Don't see a problem there.

However I do feel the broader market is poised for a correction and that may be reflected in the way these patterns are breaking right now.

A few of the recent flags and pennants I have posted have either broken to the downside or had weak one or two day breaks to the upside. 

I'm taking quick profits and moving on to the next trade, rather than trying for bigger gains.

INL was a nice trade for me but I got out today near the top of the break.

Ditto for ABY, although I might be back there tomorrow (it hasn't really broken up yet) if the US holds up tonight.


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## sammy84 (28 April 2009)

Hi Bowman

I guess what throws me off is still the few days that the volume has been above average within its formation, but on closer look I do agree volume is falling.

I'm taking very conservative entries as of current on these patterns(until this market decides its direction) and with the aim of purely achieving 'free' trades, anything from there is a bonus. Stops are also tightened.

Bowman do you find taking quick profits ruins the expectancy however, considering these patterns have about a 40% success rate?


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## bowman (28 April 2009)

sammy84 said:


> Hi Bowman
> 
> Bowman do you find taking quick profits ruins the expectancy however, considering these patterns have about a 40% success rate?




Hi sammy

I'm not really sure how to answer that. Most of my recent trading has been either daytrades or 2-3 day trades at most, so for the time being I just approach flags and pennants the same way.

I'm trading these patterns in a way that I feel comfortable with, given my perception of the broader market.

In terms of success rates, I'm not too bothered with that either. For example SDL failed as a pennant pattern but there was a good daytrade there today (which I missed cos I was busy elsewhere) so what I'm saying is I look for quick trades in failed patterns as well.


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## saiter (28 April 2009)

Hey Bowman,

Are you using a scanner to pick out the penants and flags? if so, which one?

Thanks.

Here's my contribution:


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## bowman (28 April 2009)

Hi saiter

My charting program doesn't recognize patterns so I can't scan for them.

Mostly what I do is sort through a daily list of the Top 100 movers and look for stocks which are making a 'flagpole'. 

I put these in a watchlist and then watch for the patterns to develop.


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## gsc (28 April 2009)

Hi 

Watching WPL for a break down from a flag pattern...any thoughts ?

regards G


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## bowman (29 April 2009)

gsc said:


> Hi
> 
> Watching WPL for a break down from a flag pattern...any thoughts ?
> 
> regards G




Maybe starting to look like a falling wedge pattern. Either way I would agree that it is more likely a bearish pattern. Watch for a break down of that $36 area support/resistance.

Yesterdays short sales were 30% of the daily turnover, whereas the previous four days were 17%, 16%, 15.5%, & 17%.


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## rico01 (29 April 2009)

Bhp looks like  a bit of a pennant forming ready for the next leg up


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## bowman (29 April 2009)

Four from the resource sector.


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## bowman (30 April 2009)

The US continues to rally. Is this a genuinely strong market or a bull trap?
Dunno, but I'm still mostly daytrading.


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## nomore4s (30 April 2009)

Just for a bit of fun.

Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.

Looking pretty bullish!? Everyone work out what it is?


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## bowman (1 May 2009)

nomore4s said:


> Just for a bit of fun.
> 
> Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.
> 
> Looking pretty bullish!? Everyone work out what it is?




The good ole XAO - not looking quite as bullish today.


On the point of bullishness, don't write off a flag or pennant pattern when it fails. There might just be a good trade there a few days down the line.


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## Wysiwyg (1 May 2009)

A pennant is a relativeley long tapering flag and for technical analysis usually a symmetrical shape.

Not to be confused with rising/falling wedges, ascending/descending triangles or diddly squats.


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## bowman (1 May 2009)

Wysiwyg said:


> A pennant is a relativeley long tapering flag and for technical analysis usually a symmetrical shape.
> 
> Not to be confused with rising/falling wedges, ascending/descending triangles or diddly squats.




If it flies on the top of a 'flagpole' I'll trade it if I can, whatever shape it is, but I'm happy to remove offending charts or call them something else.

Perfect patterns are for academics and trading book authors.

It's all about the moneeeeee.


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## Trembling Hand (1 May 2009)

nomore4s said:


> Just for a bit of fun.
> 
> Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.




Arrhhh!!

I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.

But its doesn't match! And I stare at this chart all day, fool!


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## nomore4s (1 May 2009)

Trembling Hand said:


> Arrhhh!!
> 
> I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.
> 
> But its doesn't match! And I stare at this chart all day, fool!




lol, I thought you would have been the first to get it.

rotflmao


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## bowman (1 May 2009)

Trembling Hand said:


> Arrhhh!!
> 
> I spent 10 min last night doing a search for this. was going to reply that there was only 1 stock in all the ASX that closed between 37 and 37.5.
> 
> But its doesn't match! And I stare at this chart all day, fool!




LOL. I did exactly the same thing this morning.

Then I noticed the volume.


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## sammy84 (1 May 2009)

Thanks nomore4's. I even went as far to run a scan of the US markets to see what was within that price range. There was alot, but nothing with that pennant


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## nomore4s (1 May 2009)

lol, sorry guys I didn't think it would cause such a problem

You could've just asked:


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## sammy84 (1 May 2009)

nomore4s said:


> You could've just asked:




Wheres the fun in that!


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## moXJO (1 May 2009)

They name pops up when you mouse over the chart I thought?


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## bowman (1 May 2009)

ROFLMAO!

So it does.


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## >Apocalypto< (1 May 2009)

nice thread guys keep it up!


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## beamstas (2 May 2009)




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## db96 (3 May 2009)

MLI is forming a wedge/pennant. Is there much difference between the the two. The important question is which direction is it going to break out.


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## Sean K (3 May 2009)

db96 said:


> MLI is forming a wedge/pennant. Is there much difference between the the two. The important question is which direction is it going to break out.



I'm not sure if a couple of days action is sufficient to establish a pattern. It may be, but there seems to be a higher probability of a pattern conforming to the T/A theory when there's more time involved in the S&R.


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## bowman (3 May 2009)

I tend to define flags and pennants as most patterns that form at the top of a 'flagpole'.

Bukowski is probably more specific when it comes to pennant and flag shapes.

He also specifies a duration. I'm not sure about the minimum, but from memory anything over three weeks he describes as a wedge or triangle rather than flag/pennant.


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## Average Joe (3 May 2009)

I am new to trading these patterns, so go easy on me if I'm seeing things...

BRU looks like a consolidation above support after a gap. Support has been holding.


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## db96 (3 May 2009)

Average Joe said:


> I am new to trading these patterns, so go easy on me if I'm seeing things...
> 
> BRU looks like a consolidation above support after a gap. Support has been holding.




Looks like a good little flag forming there Av Joe. In theory it should a break out in the direction of the current trend which is up. look for increasing vol on the break out. They are supposed to be a continuation pattern, but any thing could happen in this market. Having said that, it also looks like a descending triangle.


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## Wysiwyg (3 May 2009)

db96 said:


> MLI is forming a wedge/*pennant*. Is there much difference between the the two. The important question is which direction is it going to break out.






db96 said:


> Looks like a good little flag forming there Av Joe.




No and no, but you might believe cows lay eggs and chickens are milked.:dunno:


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## db96 (3 May 2009)

Wysiwyg said:


> No and no, but you might believe cows lay eggs and chickens are milked.:dunno:




Yep. All a little wee bit confusing.


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## bowman (3 May 2009)

db96 said:


> Yep. All a little wee bit confusing.




There's nothing confusing about the psychology of these patterns.

1. A stock has a rapid run up on big volume over a few days, usually because of an event or news.

2. The stock consolidates in some kind of pattern.

3. The stock either breaks up and runs again or breaks down - depending on the validity of the original news, or at least the markets perception of that.

A similar pattern can occur over a longer period of time, where the 'flagpole' is not so vertical, perhaps at 45 degrees, and then a flag like consolidation pattern forms.

All there patterns are tradeable.

I was considering starting a thread called 'Stocks that run really hard and really fast, and then have a breather while the participants decide what happens next' - but it's not very catchy is it?
:


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## db96 (3 May 2009)

bowman said:


> There's nothing confusing about the psychology of these patterns.
> 
> 1. A stock has a rapid run up on big volume over a few days, usually because of an event or news.
> 
> ...




Thanks for that Bowman. I guess for any of these patterns, it depends on the direction of the breakout, so you trade in that direction with tight stops. What about a thread under  "Common chart patterns" whether it be pennants, flags, wedgies, ascending/descending/ symmetrical triangles, H&S, inverted H&S, doublt/triple/multiple tops, channels, cup&handle ect ect ect.


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## beamstas (3 May 2009)

The stock runs up
Sellers move in initially to take profits
Buyers come in to try and get on the trend

A small struggle between buyers and sellers occurs
After about a week volume is really drying up

The direction we move is dependant on who is winning between buyers and sellers 

Brad


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## Sean K (4 May 2009)

Bit of a pennant developing here.


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## Sean K (4 May 2009)

kennas said:


> Bit of a pennant developing here.



Trading halt for a capital raising so I doubt this will break to the upside.


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## bowman (6 May 2009)

BGD - flag
BWP - pennant
IRD - flag (thinly traded)


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## DAZT49 (6 May 2009)

just started following this thread.
I have been interested in what I call small triangle/dropping volumes, but havent taken much notice of flags and pennants.
I would be interested in yr take on this BMN chart.
Was that a pennant and followed by a flag??
Which way does the SP go from this scenario?
Please excuse my other trend lines.
cheers
dazt49


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## nomore4s (6 May 2009)

DAZT49 said:


> just started following this thread.
> I have been interested in what I call small triangle/dropping volumes, but havent taken much notice of flags and pennants.
> I would be interested in yr take on this BMN chart.
> Was that a pennant and followed by a flag??
> ...




How can you even read that mess? Looks like a plate of spag with all those lines all over it, you don't use Gann do you?:

BMN actually came up on my triangle/pennant scan the other night. Don't know which way it will break but yesterdays bar isn't very positive. Probably favouring a break down to test support @ 85-90c.


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## DAZT49 (6 May 2009)

nomore,
Well thanks for canning my "system" lol
I should have cleaned it up before posting.
cheers


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## nomore4s (6 May 2009)

DAZT49 said:


> nomore,
> Well thanks for canning my "system" lol
> I should have cleaned it up before posting.
> cheers




lol, as long as you can understand it that is all that matters but I started to get a headache looking at that chart:


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## DAZT49 (6 May 2009)

I am always looking for support/reistance,hence all the trend lines.
In the sequence before yr pennamt (ie from the high on 8th April to 22nd April) isnt that a sort of flag/pennant pattern?


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## beamstas (6 May 2009)

nomore4s said:


> How can you even read that mess? Looks like a plate of spag with all those lines all over it, you don't use Gann do you?:
> 
> BMN actually came up on my triangle/pennant scan the other night. Don't know which way it will break but yesterdays bar isn't very positive. Probably favouring a break down to test support @ 85-90c.




Hey nomore4s

Generally, if the stock is trending down, it will probe lower than the triangle, push up slightly into the triangle (as your chart has done), touch it 5 times and then break down through the bottom. If the trend is extremely strong (like we saw on XJO), it may only touch 3 times. A classic elliott wave triangle has 5 internal points. Im favouring a break to the downside here.

Cheers
Brad


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## nomore4s (6 May 2009)

DAZT49 said:


> In the sequence before yr pennamt (ie from the high on 8th April to 22nd April) isnt that a sort of flag/pennant pattern?




My marked triangle is actually part of a larger pattern - it is the larger pattern that was picked up on my scan - with my system there is a possible trade on there.

Please note - this is not advice to trade this stock on this pattern or even a recommendation - I will probably not be trading it myself. This is for discussion purposes only!


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## DAZT49 (6 May 2009)

nomore4s said:


> My marked triangle is actually part of a larger pattern - it is the larger pattern that was picked up on my scan - with my system there is a possible trade on there.
> 
> Please note - this is not advice to trade this stock on this pattern or even a recommendation - I will probably not be trading it myself. This is for discussion purposes only!



nomore,
Yes understood, i am just trying to see In one easy lesson, how these things work lol
So how do you deduce it breaking to the downside?
thanks


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## nomore4s (6 May 2009)

DAZT49 said:


> nomore,
> Yes understood, i am just trying to see In one easy lesson, how these things work lol
> So how do you deduce it breaking to the downside?
> thanks




Don't know really, probably no more than a guess which is why you wait for confirmation of a break either way before taking a trade.

BMN could actually break down from the micro triangle test the bottom line of the larger pattern and then break up from the larger pattern. BMN is actually trending up atm even though the higher timeframes are still down.


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## beamstas (6 May 2009)

DAZT49 said:


> nomore,
> Yes understood, i am just trying to see In one easy lesson, how these things work lol
> So how do you deduce it breaking to the downside?
> thanks




1: Refer to my signature for the best answer
2: I said this earlier in the thread 

"The stock runs up
Sellers move in initially to take profits
Buyers come in to try and get on the trend

A small struggle between buyers and sellers occurs
After about a week volume is really drying up

The direction we move is dependant on who is winning between buyers and sellers "

Now if we are in a downtrend, change it around to 

"The stock runs down
Shorters cover initially to take profits (puts buying pressure)
Sellers come in to try to minimise their losses (puts selling pressure)

A small struggle between shorters and sellers occurs
After about a week volume is really drying up

The direction we move is dependant on who is winning between shorters and sellers "


----------



## saiter (7 May 2009)

Green lines indicate resistance. Blue lines are support. Check the volume panel too. If there's no resistance line, then that stock is currently in new territory.


----------



## skc (8 May 2009)

BTA again anyone? Huge gap is now closed. So far on this thread gap play + flag has a good hit rate.


----------



## beamstas (8 May 2009)

skc said:


> BTA again anyone? Huge gap is now closed. So far on this thread gap play + flag has a good hit rate.




Nice one


----------



## saiter (8 May 2009)

skc said:


> BTA again anyone? Huge gap is now closed. So far on this thread gap play + flag has a good hit rate.




IMO, I think the suckers who bought after the news release (Huge volume on the 27th and 28th of April) are going to panic sell as they realise that swine flu wasn't the "pandemic" it was made out to be and this will result in a price crash.

EDIT: Here's a picture of what I mean...


----------



## skc (8 May 2009)

saiter said:


> IMO, I think the suckers who bought after the news release (Huge volume on the 27th and 28th of April) are going to panic sell as they realise that swine flu wasn't the "pandemic" it was made out to be and this will result in a price crash.
> 
> EDIT: Here's a picture of what I mean...




Agree. Crazy Dokic makes way better front page news than swine flu.

But BTA should not give back _all _its gains - some government will probably announce increase stockpile or something like that.


----------



## sammy84 (8 May 2009)

BTA is trading is too much on news so to speak. On bad head line and its all over. It treated me well so far however 

Good ascending triangle micro pattern on PBG. The volume is what first got my attention. This thing has already done 500% from its lows, would've been a great knife catcher. 




There's so many of these patterns at the moment.


----------



## Wysiwyg (8 May 2009)

Any you boys getting a continuation on these triangles?


----------



## nomore4s (9 May 2009)

nomore4s said:


> Just for a bit of fun.
> 
> Here is a nice breakout of a triangle. Decreasing volume during the formation of the pattern and increased volume in the breakout today.
> 
> Looking pretty bullish!? Everyone work out what it is?




Just a follow up to this chart. Turned out it was pretty bullish.

These patterns have been great trading lately as most of the patterns are coming off solid bases and market conditions have really suited this type of trading.


----------



## nomore4s (9 May 2009)

nomore4s said:


> Don't know really, probably no more than a guess which is why you wait for confirmation of a break either way before taking a trade.
> 
> BMN could actually break down from the micro triangle test the bottom line of the larger pattern and then break up from the larger pattern. BMN is actually trending up atm even though the higher timeframes are still down.




Another follow up

BMN has broken down from the micro triangle and the larger pattern is now on the verge of failing, will be watching this one next week to see how it all plays out.


----------



## skc (11 May 2009)

DOW. Just poking it's head out of the little pennent/triangle/congestion zone.


----------



## skc (11 May 2009)

IIF, may be. The move up before not that clean. Wonky flag pole.


----------



## saiter (11 May 2009)

This is one that I really like:




The dotted blue and black lines are previous supports that it has broken through. It has formed a nice tripple/double bottom and has just hit the previously broken resistance and gone down on decreasing volume. Expecting it to rise some time this week.


----------



## Sean K (12 May 2009)

AGS likes a pennant or two, or three...wonder if the trend continues?


----------



## bunyip (12 May 2009)

Apart from the classic chart patterns like Flags, Pennants, Wedges, Triangles, Rectangles etc, there are a number of less talked about but still very effective patterns that can be good entry setups.
One of these is the Outside Day, or Engulfing Pattern if you prefer Japanese Candlestick terminology. 
It's simple, effective, and easy to recognise. Easy to scan for too, at least in my charting software.
Do a Google search on how to trade Engulfing patterns or Outside Days, and most of the info that comes up will talk of using them as trend reversal patterns.
I prefer to use them as trend continuation patterns, as shown in the attached chart. With or without the Fibonacci analysis as shown, an Engulfing pattern can pinpoint where a retracement has finished and the trend has resumed.


----------



## Struzball (12 May 2009)

Some great flags/pennants whichever they are on IPL.

I wonder if it will continue the trend.


----------



## bowman (13 May 2009)

A couple of speccies.


----------



## bulli (14 May 2009)

SBM - I believe there is a flag forming here for possible break-down.


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## bowman (16 May 2009)

Here's a few flags and pennants on a WEEKLY timeframe.


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## Wysiwyg (16 May 2009)

bowman said:


> Here's a few flags and pennants on a WEEKLY timeframe.




I really think you don`t understand what a pennant is. 

Have a look at the definition of ascending/descending triangle and rising/falling wedge. Not knocking your contribution but this is a flag and pennant thread.


----------



## bowman (16 May 2009)

I think I've explained myself before.

I understand what ascending triangle and descending trianges are, but as far as I'm concerned when they occur at the top of a flagpole they are flags and pennants.

Your whole objection seems to be with the shape of the pennant ie. it must be symmetrical.

Why? 

They're all just  brief consolidation patterns on top of a 'flagpole'.

But if it bugs you that much I'll bugger off if you like.


----------



## It's Snake Pliskin (16 May 2009)

Wysiwyg said:


> I really think you don`t understand what a pennant is.
> 
> Have a look at the definition of ascending/descending triangle and rising/falling wedge. Not knocking your contribution but this is a flag and pennant thread.




Care to show some for us?


----------



## bowman (17 May 2009)

Here's a couple of ....ummm.....hmmm.... consolidation patterns sitting on top flagpoles.

The first one is called Sally and the second one is Harry.


----------



## Wysiwyg (17 May 2009)

It's Snake Pliskin said:


> Care to show some for us?




Sure snake ... notice from the start of the pennant there are higher lows and lower highs.   

https://www.aussiestockforums.com/forums/showpost.php?p=371568&postcount=1166

https://www.aussiestockforums.com/forums/showpost.php?p=399818&postcount=265


----------



## db96 (17 May 2009)

bowman said:


> I think I've explained myself before.
> 
> I understand what ascending triangle and descending trianges are, but as far as I'm concerned when they occur at the top of a flagpole they are flags and pennants.
> 
> ...




Keep the charts coming, Bowman. Love your work and the efforts. Trade the break out.


----------



## CanOz (17 May 2009)

http://www.thepatternsite.com/pennants.html

CanOz


----------



## bowman (17 May 2009)

I've had that link for years. Digested a lot of the patterns. Threw up most of the statistics.

Example: Falling wedge, average rise/decline 33%/20%

In which market? 

Bull or bear?

Try applying most of those statistics to your trading and you'll go nuts.

The question is do you want to be a good trader or a good statistician?

Learn the rules by all means, but don't imbue chart patterns with magical/mystical powers.

Free it up a little. Trade and make money!


----------



## bowman (17 May 2009)

db96 said:


> Keep the charts coming, Bowman. Love your work and the efforts. Trade the break out.




Cheers db - trade the breakout indeed.

This is all getting a bit anal for me.

Maybe a new thread is called for - The Technical Anarchist thread.

Join me on the dark side  LOL


----------



## Wysiwyg (17 May 2009)

Some definitions of a pennant.



> Description :
> 
> A Pennant (Bullish) follows a steep, or nearly vertical rise in price, and consists of two converging trendlines that form a narrow, tapering flag shape. *The Pennant shape generally appears as a horizontal shape, rather than one with a downtrend or uptrend.*
> Apart from its shape, the Pennant is similar in all respects to the Flag. The *Pennant is also similar to the Symmetrical Triangle *or Wedge continuation patterns however; the Pennant is typically shorter in duration* and flies **horizontally*.







> Pennant Chart Definition :
> 
> A pennant chart formation occurs after a security experiences an impulsive up or down move. After such a strong run-up, the security will take a "breather" before continuing in the direction of the primary trend. *This* *breather resembles a symmetrical triangle*, where two trendlines converge to a point, hence the term "pennant". While inside the pennant, there are a number of minor price fluctuations that occur on light volume.






> The Pennant :
> 
> *The pennant forms what looks like a symmetrical triangle*, where the support and resistance trendlines converge towards each other. The pennant pattern does not need to follow the same rules found in triangles, where they should test each support or resistance line several times. Also, the direction of the pennant is not as important as it is in the flag; however, the pennant is generally flat.






> Pennant:
> 
> *A pennant is a small symmetrical triangle* that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.






> Bull Pennant :
> 
> Appearance:  The advance has solid volume and the upward price action is strong, which forms the vertical look of a flagpole.  The resting period and narrowing price action is characterized by volume contraction as upside intensity is temporarily interrupted.  *This forms a pennant which also* *resembles a small symmetrical triangle*.  The pennant portion of the pattern has highs and lows which can be connected by small trend lines which converge.






> Pennant:
> 
> *A pennant is a small symmetrical triangle* that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.






> *Pennants look very much like symmetrical triangles*.  But pennants are typically smaller in size (volatility) and duration.


----------



## CanOz (17 May 2009)

bowman said:


> I've had that link for years. Digested a lot of the patterns. Threw up most of the statistics.
> 
> Example: Falling wedge, average rise/decline 33%/20%
> 
> ...




My intention was to show that most of your pennants and flags agreed with TB's.

CanOz


----------



## bowman (17 May 2009)

LOL canauaussieuck

Actually I think TB  is specific that pennannts are symmetrical. 
But I don't have a problem with that.

What I am interested in is the consolidation patterns that occur on top of
flagpoles, many of which are flags and pennants by his definition, but some are also in the shape of ascending & descending triangles and perhaps wedges, (and some are just plain ugly and undefined ...lol )

I include them under this thread because they are :

1. sitting on top of a flagpole, and/or
2. too short in time frame to be termed as triangles and wedges.

Wysiwyg has his knickers in a knot because these patterns don't fit the 'Flags and Pennants' thread.

He seems to be interested in being a pedant (scuse the pun) and winning an argument.

I am interested in finding quick, short term trades.

I will leave it at that because as I said earlier, in my mind this is all getting a bit anal and I have better things to do that carry on a pointless argument.

Right now I'm looking at charts for possible swing trades for tomorrow so I'll get back to it.
Cheers.


----------



## db96 (17 May 2009)

PBG


----------



## It's Snake Pliskin (17 May 2009)

Wysiwyg said:


> Sure snake ... notice from the start of the pennant there are higher lows and lower highs.
> 
> https://www.aussiestockforums.com/forums/showpost.php?p=371568&postcount=1166
> 
> https://www.aussiestockforums.com/forums/showpost.php?p=399818&postcount=265



Thanks for others' charts.


----------



## Go Nuke (18 May 2009)

Amazed no one threw MEL up on this thread yet 

STO also had a similar pattern a few weeks back.Although thats all changed lately with the cap raising.


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## db96 (18 May 2009)

KAR


----------



## Nick Radge (19 May 2009)

Here is a great info site:

http://www.chartpatterns.com/cp_prs_user_manual.htm


----------



## nomore4s (19 May 2009)

Thanks for the link Nick.

CBA looks interesting.


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## bowman (20 May 2009)

The flagpole gap on MLI is filled.


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## -Bevo- (20 May 2009)

SWK Pennant, OBV is up hasn't broken today volume is a little thin.


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## Kryzz (20 May 2009)

AQA, bullish flag sitting on support/resistance (volume not shown)


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## johnnyg (20 May 2009)

Sorry if its been posted before.


----------



## sammy84 (20 May 2009)

Has this thread become more popular than the breakouts thread? Personally I find the reliability on these patterns alot higher than your typical breakout.


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## skc (21 May 2009)

ABY again. The length of the flag is some 30% of the share price, so not necessarily a low risk set up.


----------



## skc (21 May 2009)

sammy84 said:


> Has this thread become more popular than the breakouts thread? Personally I find the reliability on these patterns alot higher than your typical breakout.




True true. It has been quite reliable. I think the high success rate probably has more to do with the huge bear market rally rather than the patterns themselves.

Interesting to see what the success rate will be like from now on.


----------



## Sean K (21 May 2009)

sammy84 said:


> Has this thread become more popular than the breakouts thread? Personally I find the reliability on these patterns alot higher than your typical breakout.



Many of the breakouts were pennants, or flags, so hard to tell what's more successful. 

Agree with skc.

My anacdotal conclusion here is that pennants and flags have a much higher probablility of success in an uptrending market. We're now up 20% plus since the 'bottom'. A very strong bear bounce/rally. Of course these formations will produce these results in such an environment.

It's written in the theory somewhere also.....


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## johnnyg (21 May 2009)

skc said:


> BTA again anyone? Huge gap is now closed. So far on this thread gap play + flag has a good hit rate.




Anyone get on BTA? Took a little while longer to form but even with a conservative entry you'd be @ 1R already.


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## skc (22 May 2009)

johnnyg said:


> Anyone get on BTA? Took a little while longer to form but even with a conservative entry you'd be @ 1R already.




I got in at $1.14 and scratched it after a week or so. Didn't like where the broader market was heading, didn't like where the swine flu news was going and didn't have the patience, as you said, took a little while longer than it should. Also didn't notice the new flag/pennant forming after I left the trade.

Didn't do a lot of things really...


----------



## Jack Payback (22 May 2009)

Just out of curiosity, does anybody use these patterns for forex trading?

It seems to have been stocks only in this thread.


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## db96 (25 May 2009)

CDU

This one is making a move today.


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## catman (25 May 2009)

ASL potential upside breakout out of the pennant to compete an inverted head and shoulder pattern.


----------



## beamstas (25 May 2009)

johnnyg said:


> Anyone get on BTA? Took a little while longer to form but even with a conservative entry you'd be @ 1R already.




Looked at it
Didn't like it


----------



## Kryzz (25 May 2009)

Possible short? Rising wedge with SGM, declining volume.

Shaun.


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## bowman (26 May 2009)

Three more speccies - THX had a go at breaking out yesterday but failed.


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## johnnyg (26 May 2009)

beamstas said:


> Looked at it
> Didn't like it




Reason being? (Nick's post possibly?)


----------



## beamstas (26 May 2009)

johnnyg said:


> Reason being? (Nick's post possibly?)




Not a post on the ASF


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## Sean K (26 May 2009)

beamstas said:


> Not a post on the ASF



Why post anything here that you can't share your reasoning?

Would help the rest of us.


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## beamstas (26 May 2009)

kennas said:


> Why post anything here that you can't share your reasoning?
> 
> Would help the rest of us.




Sorry i was just answering his question

If you want to know why i didn't like it is that it is already at "half mast". A consolodation that is made a long way down the "mast" like that will generally fail before it reaches new highs.


----------



## johnnyg (26 May 2009)

Nick Radge said:


> *TECHNICAL:* One thing that a computer simulation can't do is help you understand when and why a pattern will fail. In the mid-90's I spent 2-hours per day, 7-days per week for 18-months eyeballing specific chart patterns. Doing it by hand allows you to see things that would not normally stand out. Amongst many things two congestion pattern failures stood out; the first was when we get a parabolic rise followed by a extremely large triangle. These tended to break against the trend rather than with the trend. *The other was when we saw a tight consolidation after a parabolic rise but one that consolidated below the absolute highs*, which is what KAR is doing. Think of a flag flying at the top of the pole vs. a flag flying at kind of half mast. When they fly at half mast we tend to get a failure. KAR is not flying at the top of its mast here so I'm more inclined to think it will fail and either start lower or morph into another pattern such as a flag. This is not to say that other bullish patterns can't come forth, they may well do. But with the current information I wouldn't be looking for KAR to break higher from this triangle.




Not this one Brad?

EDIT - Beat me to it.


----------



## beamstas (26 May 2009)

johnnyg said:


> Not this one Brad?




Is that on here?
Anyway that's the sentence but i didn't read that. It was part of a video (where it is discussed in a bit more depth) 

Thanks Johnny
Brad


----------



## johnnyg (26 May 2009)

Follow up on HDF. Currently @ 1.5R using a conservative entry. You could now move the stop to B/E. The Gap is of slight concern.

What about WAN. Upside down Flag? (insert correct name here) :


----------



## db96 (26 May 2009)

johnnyg said:


> What about WAN. Upside down Flag? (insert correct name here) :




What about a bottom's up flag. It is quite bearish. Look for a target of 3.70 if it breaks that lower trend line.


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## db96 (26 May 2009)

BGD
How did we misss this one? Good example of ascending scallop/parabolic chart pattern. It has a does have a flag in it.


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## nomore4s (26 May 2009)

AOE, not a fully formed triangle but it is in a strong trend and looks ready to breakout.


----------



## nunthewiser (26 May 2009)

on a weekly chart i,d be more inclined to view AOE more to the short bias ....


could be wrong but on watchy now thanks


----------



## nomore4s (26 May 2009)

nunthewiser said:


> on a weekly chart i,d be more inclined to view AOE more to the short bias ....
> 
> 
> could be wrong but on watchy now thanks




lol, tbh I didn't even look at the weekly.


----------



## nunthewiser (26 May 2009)

THINKS .maybe one last puff from it perhaps creating a false break? and then a decent shortable opportunity ...like i said could be wrong 50% chance of being so  but nuntheless an intresting chart nomore4,s . will be watching closely

cheers


----------



## nunthewiser (27 May 2009)

i just tried to post a weekly on aoe straight from etrade iress and saved to my docs but came up as "invalid file "
aoe chart.xml:


----------



## db96 (27 May 2009)

nunthewiser said:


> i just tried to post a weekly on aoe straight from etrade iress and saved to my docs but came up as "invalid file "
> aoe chart.xml:




AOE Weekly


----------



## db96 (27 May 2009)

CYA


----------



## nomore4s (27 May 2009)

nunthewiser said:


> i just tried to post a weekly on aoe straight from etrade iress and saved to my docs but came up as "invalid file "
> aoe chart.xml:




Nun try saving it as PNG file.


----------



## johnnyg (28 May 2009)

Ok so with 9 pages on Flags and Pennants we certainly are going along with the crowd mentalilty with everyone recognising these patterns and looking to buy at a certain point. 

I now ask the Question, is there a way to get in before the crowd does? To think differently with these setups to give you a greater edge?

I think itd be hard to because buying during the formation of the pattern doesnt necessarily mean the price is going to break, yes you could have a greater R:R and there is examples of where you could pre-empt the move however the pattern may fail or just simply continue on with out any real direction.

Id be interested on thoughts on this.


----------



## johnnyg (28 May 2009)

Another Pennant in a strong uptrend.


----------



## beamstas (28 May 2009)

johnnyg said:


> Ok so with 9 pages on Flags and Pennants we certainly are going along with the crowd mentalilty with everyone recognising these patterns and looking to buy at a certain point.
> 
> I now ask the Question, is there a way to get in before the crowd does? To think differently with these setups to give you a greater edge?
> 
> ...




Yes there is
But saying it here
Would mean instead of getting in ahead of the crowd 
You would get in with the crowd once again

The best trading secrets arn't the ones you read or hear


----------



## johnnyg (28 May 2009)

So you have the Holy Grail for trading Flag and Pennant Breakouts?


----------



## saiter (28 May 2009)

johnnyg said:


> Ok so with 9 pages on Flags and Pennants we certainly are going along with the crowd mentalilty with everyone recognising these patterns and looking to buy at a certain point.
> 
> I now ask the Question, is there a way to get in before the crowd does? To think differently with these setups to give you a greater edge?
> 
> ...




How can you have an edge in flags and pennants?
They're based on a sudden surge in buying/selling, and the only edge that'd be useful would be the one predicting this surge, which is impossible.


----------



## Sean K (29 May 2009)

saiter said:


> How can you have an edge in flags and pennants?
> They're based on a sudden surge in buying/selling, and the only edge that'd be useful would be the one predicting this surge, which is impossible.



So, buy in before the surge, and have a stop.

RIV looking like a chance.


----------



## beamstas (29 May 2009)

johnnyg said:


> So you have the Holy Grail for trading Flag and Pennant Breakouts?




No.


----------



## nunthewiser (29 May 2009)

kennas said:


> So, buy in before the surge, and have a stop.
> 
> RIV looking like a chance.




i like RIV chart m8 , nice gentle , no rocket ships involved 

placed on watch to see which way it breaks 

cheers


----------



## saiter (29 May 2009)

PLA PLA PLA PLA PLA

Got stopped out 3 times from this one ****! So much fun trying to do it intraday 
The chart should be here somewhere in the thread.

ciao


----------



## saiter (29 May 2009)

kennas said:


> So, buy in before the surge, and have a stop.




But then how is that an edge if almost everyone is doing it?


----------



## beamstas (29 May 2009)

saiter said:


> But then how is that an edge if almost everyone is doing it?




Think before you post.......


----------



## nunthewiser (29 May 2009)

saiter said:


> But then how is that an edge if almost everyone is doing it?





allsorts of patterns out there m8 

knowing how to read them and expectations of outcomes gives you that lil bit more 

patterns are good ........ most indicate a move is due 

picking the direction and managing the position is where the edge comes in


----------



## nunthewiser (29 May 2009)

HOLY SHEET! 

ive clocked up 2000 posts today 

man i need to get out more!


----------



## legs (30 May 2009)

MGX got a flag happening???

New at this type.

http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined


----------



## legs (30 May 2009)

kennas said:


> Bit of a pennant developing here.




Any update on this one? PRU.ax


----------



## Sean K (31 May 2009)

legs said:


> Any update on this one? PRU.ax



She's conforming to some support lines here, as well as top resistance line on the pennant. Support above 82 established by the chart and probably the capital raising at 82 (I think). So, still in play, for now. POG could be a factor whether it breaks up or down perhaps.


----------



## legs (1 June 2009)

Looks like it has started to break up today..

Up to 0.98


----------



## Surfer35 (1 June 2009)

Legs,

I think you might be on to something with MGX. Another bounce off .85 and a tightening bottom range around the .79 mark should see a nice flag formation. Volume is average too.

Watching this one with interest. Has a tendency to move around a bit, so might provide a short term break out beyond .85.


----------



## legs (1 June 2009)

Kennas what do you think about MGX??


If it bounces off the top line again it is showing a nice pennant isnt it???  Like PRU's??  

By the way PRU looks strong today still!!!


----------



## beamstas (1 June 2009)

I like it

edit: where did your post go?


----------



## legs (1 June 2009)

Here it is...sorry i had to try and fix it.


----------



## Sean K (1 June 2009)

legs said:


> Kennas what do you think about MGX??
> 
> If it bounces off the top line again it is showing a nice pennant isnt it???  Like PRU's??



Maybe a short term triangle over the 70 ish support mark, but dodgy. Too extreme in it's movements short term to make a call there for me.

Longer term. looks pretty good.

Been trending up for 6 months. Clearing resistance and then it's formed support.

Yet another resource stock that has done extremely well the past few months.

The question still remains, 300% bear bounce/dead cat, or start of a long term recovery?


----------



## legs (1 June 2009)

kennas said:


> Maybe a short term triangle over the 70 ish support mark, but dodgy. Too extreme in it's movements short term to make a call there for me.
> 
> Longer term. looks pretty good.
> 
> ...






Couldnt you say the same for PRU though??


----------



## legs (1 June 2009)

Re: PRU - Perseus Mining 

--------------------------------------------------------------------------------

Quote:
Originally Posted by kennas  
Intersting pennant/triangely thing appearing here in a very nice uptrend and over significant horizontal support. Looks pretty bullish for a break up to me if that all holds. Should do unless a black swan lands in the pond. Hate those! 


Potential breakup intraday, but intra day calls are for mugs. So, I won't be muggish enough to call it a break up at this time. But it has potential. Or, I'll be a mug.


----------



## saiter (1 June 2009)

legs said:


> Re: PRU - Perseus Mining
> 
> --------------------------------------------------------------------------------
> 
> ...




Yup PRU has broken through, same with IRN and AGO. Tried to get the orders filled in the last minute but I missed out  Oh well see what happens tomorrow...


----------



## skc (1 June 2009)

A pennant above support. The movement before hand not exactly trendy, however.


----------



## legs (2 June 2009)

What do you say when this happens??

It hasn't "*broken out*" has it?


MACD is also showing a "buy" isn't it?


----------



## wonderrman (2 June 2009)

This one broke out today. RIV.


----------



## bowman (5 June 2009)

Two more speccies.


----------



## travwj (5 June 2009)

GDY pennant. New to T/A. But would you expect this to comtinue on it's small uptrend. Any feed back would be much apprreciated. Trav


----------



## legs (5 June 2009)

bowman said:


> Two more speccies.




SAR is 2 weeks long enough to rely on a pennant shape?


anyone?


----------



## bowman (5 June 2009)

You can check the time frames on this site legs.

http://thepatternsite.com/

As I understand it pennants are usually of a short duration, and anything over a certain time frame (3 weeks??) is typically reclassified as a symmetrical triangle.


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## saiter (5 June 2009)

Is it just me or are most of the formations breaking out and double topping? (See PLA, PNA, IRN, JPR..) I'm guessing this is either because the XAO is having trouble breaking through 4000 or these stocks are heading down because the XAO won't be breaking 4000...hmmmmmm


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## skc (11 June 2009)

TAP


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## skc (11 June 2009)

TWR. Two little pennants / flags in a row


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## skc (11 June 2009)

UXC - a little flag after retracement tagged 50%. If I speak EW I would say it's wave 3-ii developing.


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## nomore4s (11 June 2009)

NHC forming a nice triangle - on the verge of breaking up today but volume was low. Need to see some follow through with some decent volume now.

I hold.


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## nomore4s (11 June 2009)

BMN - I actually really like the look of this one.

Forming a triangle above latest breakout area with good volume attributes.

White line is old support/resistance.


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## db96 (12 June 2009)

GXY


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## db96 (12 June 2009)

nomore4s said:


> BMN - I actually really like the look of this one.
> 
> Forming a triangle above latest breakout area with good volume attributes.
> 
> White line is old support/resistance.





BMN recently did an equity raising at an issue price of $1 per share. Raising 30Mil from institutions and 7.5 Mil from Retail. These new shares are expected to trade on the 30/06/09. This may cause a breakout below???


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## skc (12 June 2009)

db96 said:


> BMN recently did an equity raising at an issue price of $1 per share. Raising 30Mil from institutions and 7.5 Mil from Retail. These new shares are expected to trade on the 30/06/09. This may cause a breakout below???




I have always wondered if this effect is real or not. If someone just bought some new equity, they can lock in profit straight away by shorting it now, rather than wait for 30 Jun to compete with other holders for the sell. But I guess some funds may not be able to short sell due to their mandate.

Can anybody give some recent examples of share price movement on the day of new shares being traded? 

Purely on the chart however, it look a good legit pennant.


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## db96 (13 June 2009)

skc said:


> I have always wondered if this effect is real or not. If someone just bought some new equity, they can lock in profit straight away by shorting it now, rather than wait for 30 Jun to compete with other holders for the sell. But I guess some funds may not be able to short sell due to their mandate.
> 
> Can anybody give some recent examples of share price movement on the day of new shares being traded?
> 
> Purely on the chart however, it look a good legit pennant.




BSL is one where the stock price is down on the day where the new issued shares are allowed to trade.


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## skc (15 June 2009)

db96 said:


> BSL is one where the stock price is down on the day where the new issued shares are allowed to trade.




Well spotted db96. 

I suspect the instos were shorting the share before they are allowed to trade hence the strong down swing 2 weeks prior to that.


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## db96 (17 June 2009)

GDN


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## nunthewiser (17 June 2009)

nunthewiser said:


> on a weekly chart i,d be more inclined to view AOE more to the short bias ....
> 
> 
> could be wrong but on watchy now thanks






nunthewiser said:


> THINKS .maybe one last puff from it perhaps creating a false break? and then a decent shortable opportunity ...like i said could be wrong 50% chance of being so  but nuntheless an intresting chart nomore4,s . will be watching closely
> 
> cheers




 i am a living legend 

that,ll be $99.95 thanks

sunshine and lollipops

pity i didnt trade it


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## bowman (22 June 2009)

Two more from the resource sector.


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## bowman (23 June 2009)

AON held up relatively well today. If she breaks down or up I'll add to my position either way.


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## Sean K (26 June 2009)

Looks tastey..


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## bowman (2 July 2009)

Hehehe...just found FRS today


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## Kryzz (16 July 2009)

SRL flag


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## skc (17 July 2009)

SMX. Nice flag. Good fundamentals as well. DYOR.


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## Ghetto23 (20 July 2009)

kennas said:


> Looks tastey..




Not so tasty now?

Excuse my newbie-ness here-

When you are looking at making a trade on a pattern like this, do you buy in on the bottom line if possible and wait for the breakout (with a close SL), or set a conditional order to but during the breakout and let it run up?


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## white_crane (20 July 2009)

Ghetto23 said:


> Not so tasty now?
> 
> Excuse my newbie-ness here-
> 
> When you are looking at making a trade on a pattern like this, do you buy in on the bottom line if possible and wait for the breakout (with a close SL), or set a conditional order to but during the breakout and let it run up?




It depends.

Check this link for some information on the pennant chart pattern:
http://thepatternsite.com/pennants.html


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## Ghetto23 (21 July 2009)

Looking at GXY - it had a pennant, then a flag.

Is this common? Am I being too artistic in my analysis?


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## Ghetto23 (30 July 2009)

Hasn't been one for a while - try MEO


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## Ghetto23 (31 July 2009)

Another one - GBG


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## Ghetto23 (19 August 2009)

Hasn't been one of these posted for a while.

This looks like a GUD one (couldn't resist)


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## bowman (25 August 2009)

A couple from the resource & energy sectors.


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## bowman (4 September 2009)

The ROY pattern might be getting a bit long in the tooth, as indeed might the current rally.


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## lenny (9 September 2009)

Thought i would post a chart i have been watching.

PPX has formed a flag pattern and could be a nice trade if a breakout occurs

Dis:I do not hold ppx


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## lenny (9 September 2009)

Bugger I need a minimun of 5 posts to be able to post a chart


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## lenny (9 September 2009)

Thought i would post a chart i have been watching.

PPX has formed a flag pattern and could be a nice trade if a breakout occurs





Dis:I do not hold ppx


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## sammy84 (9 September 2009)

lenny said:


> Bugger I need a minimun of 5 posts to be able to post a chart



Good work persevering


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## skc (10 September 2009)

1 pennant and 1 flag


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## Wysiwyg (10 September 2009)

Soz for late pick-up but this is almost textbook.


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## Wysiwyg (10 September 2009)

Soz for late pick-up but this is almost textbook.


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## Wysiwyg (12 September 2009)

With H1N1 resistance recorded on Tamiflu users, this may increase demand for Relenza. Biota has a % of sales in Relenza through Glaxo-Smith Kline.

Regardless of possible greater market share, a pennant is forming although the stock has run pretty hard already. (said that at $1)


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## Annwn (13 September 2009)

LNG - have been following for a while, 

Bullish flag has developed after a flagpole of 3 days,
Flag has currently developed over 4 days, and has had a fall of 30 - 50% of flagpole rally.
Has broken previous resistance of .80

Cheers


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## wbosher (15 September 2009)

CCV - Not too sure if this is a pennant or an ascending triangle but here it is anyway.


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## skc (16 September 2009)

GPG... if you like Guinness (Peat). Volume quite think but not exactly complying to text book.


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## bowman (18 September 2009)

The appetite for speccy miners has thrown up a lot of these patterns - here's a bunch or two.


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## Wysiwyg (19 September 2009)

Continuing on from a pennant post last week, Fridays trading created a neutral doji symbol. Will it follow through .... with most stocks at the mercy of overall market moves.


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## Wysiwyg (19 September 2009)

Wysiwyg said:


> With H1N1 resistance recorded on Tamiflu users, this may increase demand for Relenza. Biota has a % of sales in Relenza through Glaxo-Smith Kline.
> 
> Regardless of possible greater market share, a pennant is forming although the stock has run pretty hard already. (said that at $1)





Continuing on from another pennant post. More interesting was the breakout about half way along though I am lead to believe beyond half way it can happen.


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## bowman (23 September 2009)

Some more miners and explorers.


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## DAZT49 (23 September 2009)

A couple of beauts here ( and I am in it lol)
These flags and pennants appear continually with AUS/USD forex trades.
A great tool.


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## Sean K (23 September 2009)

DAZT49 said:


> A couple of beauts here ( and I am in it lol)
> These flags and pennants appear continually with AUS/USD forex trades.
> A great tool.



huh? Where's the current flag/pennant?


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## DAZT49 (23 September 2009)

kennas,
Io nono comprende tu questioni.
Just showed two breakouts in the trend??


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## Annwn (24 September 2009)

GXY


A query - is this a pennant that has already broken out, or would you include the last 2 days as part of the formation.

Cheers


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## bonkerrs (24 September 2009)

CCP Chart. Please help me visualise. Could this be a potential flag/pennant (has very low volume)?


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## lenny (24 September 2009)

AVE has formed a nice pennant which could be a nice trade with a strong break out to the upside.


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## Ghetto23 (26 September 2009)

TRY


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## Tukker (26 September 2009)

lenny said:


> AVE has formed a nice pennant which could be a nice trade with a strong break out to the upside.






I like this, 

And.......




I also like this,:-  IMA image resources (long time holder)


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## sammy84 (28 September 2009)

FLT, near text book pennant, volume has whittled away beautifully.


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## bowman (29 September 2009)

Some explorers again. QUR s a bit flagpole challenged.


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## DaveMac (4 January 2010)

BBG - breakout to the upside (close above $11.40) would trigger the pattern... Thought I'd post it now so it doesn't become a hindsight trade...


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## skc (16 September 2010)

Been quite here for a while. Here's a nice looking flag sitting above support.


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## skc (10 January 2011)

3 flags...

HFA is approaching minor support at 27c
AQA looking to close the gap at $9.22
NUF sitting above support at $5.20


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## stickman (7 September 2013)

wow showing a perfect flag set-up


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## tech/a (7 September 2013)

Just downloaded this http://thepatternsite.com/patternz.html#PZ4

Haven't got it up and running with data yet but looks interesting.


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## Wysiwyg (11 September 2013)

stickman said:


> wow showing a perfect flag set-up



Was continuation of trend on that structure.
Simple really. Plonk a million bucks on the next flag.  
Still a 50/50 bet at entry time.


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## stickman (19 October 2013)

fkp showing a break from flag set up


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## Wysiwyg (24 May 2015)

6 day pennant on a penny.


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## Wysiwyg (26 May 2015)

A failed pattern. The feds. are onto me. Gotta skip town. Bye.


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