It looks like the volume in the Qs was increasing by today’s end. Do you mean a bloodbath for the shorts?

Marc

The simple answer is that you don’t know when it will break, and so you identify and draw the trendlines when you feel confident they are forming and then wait for a break above the upper line to place entry and place a stop beneath the lower line.

Generally, a flag will retrace 50% of the prior move (Fibonacci) so if it goes beyond that, I have less confidence in taking a trade. Also, the ‘flag’ should have a roughly 45 degree angle to increase confidence.

The key (or entry) in both instances was not the final large white candle INSIDE the pattern, but the large candle that broke out of the pattern – that triggered entry. Of course, if you wanted an aggressive entry, you certainly could have entered before the price confirmed the break but in general, aggressive entries drop off your odds of a successful trade.

I wouldn’t say that – during a strong trend, in which one side of the market absolutely dominates the other, there are no ’swings’ in price. If there are no swings, then there are no oscillations in the indicator because the 3 and 10 period moving averages remain constant and equi-distant.

During a strong trend move, it’s best to ‘throw out’ virtually all indicators except moving averages (for trade entries). During consolidation periods, it’s time to throw out moving averages in favor of oscillators. Nothing seems to work in all market environments.

Great question!

Panamon Rn+