Flags and Pennants

[skc]

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?

 

[Johno]

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

 

[Wysiwyg]

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.

 

[Johno]

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.

 

[weird]

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

 

[sammy84]

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

 

[CanOz]

Some bearish divergence there?

 

[beamstas]

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

 

[sammy84]

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.

 

[CanOz]

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

 

[Wysiwyg]

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.

 

[CanOz]

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

 

[saiter]

An example of a failed penant (for now):

 

[Wysiwyg]

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.

 

[bowman]

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.

 

[sammy84]

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

 

[bowman]

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.

 

[MS+Tradesim]

Potential...

 

[CanOz]

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

 

[MS+Tradesim]

Can, here's ABB...