Setups Continued

Good morning 

Should be an interesting day. Scotland votes no, Quad witching, Alibaba IPO could make today a wild ride.  

Bull Flag

Figure 18 Bull Flag Up Trend

Bear flag

Figure 19 Bear Flag Down Trend

Pennant or ascending/ descending triangles

Figure 20 Bull Pennant at the beginning of a trend reversal

Figure 21 Bear Pennant in a Down Trend

Flags and pennants are basically the same style of setup and for me the easiest to identify. They both have the appearance of a pole either up or down followed by the formation of a pennant or flag.  

The pennant starts out wide and continues to narrow into tight candles forming a triangle pattern. The candles get extremely tight and typically you get a break in either direction with incredible force like a spring that has been squeezed until it can’t be squeezed any more. Once it’s released all that energy has to go somewhere and that is usually reflected in the price action.

Flags build off the pole in more of a rectangular range until eventually it breaks the range in either direction.

Both of these setups are can be found in just about any time frame and are typically impacted by the dominating trend of a longer term time frame.    

Stocks I am watching this morning

BABA IPO, ACHN, IQNT Hot daily, S, ARNA, RENN,  CUR, SNGX pr very thin, CREG continuation chronic pop and flopper though, NAVB pr yesterday like the daily, MCP pr after the close possible snap back play, RFMD possible swing entry, INFN continuation nice daily 

Best of Success!

If you are interested in getting my trades entries and exits REAL TIME for both day trades and swing trades sent to you in email and in text . You can join me @ the Stock Aviator chat room. It is a paid site and if you use this link https://www.stockaviator.com/79-90-a-month-for-premium-membership your first 30 days will be at a discounted price of $79.90. After your initial 30 days it will be $99.00. I recommend trying out the free 14 day trial.

I encourage people to take their own trades with their own setups.

However, chat rooms are great for idea generation and learning the style and strategies of other traders. If you sign up say hello and let me know in the chat room. My handle is "Vegastrader66" I will walk you through how to get set up for my email alerts.