I've recently got into charting and am trying to learn all the different aspects. If you look at the 5day chart, to me it appears that today's chart looks like a bull flag compared to the rest of the chart. I was wondering if this is correct or are bull flags typically used on intraday trading? Just curious to see if I am getting the hang of it or if I am way off base. Thanks.
sbaftl58 Its like trying to eat a elephant. Better done a little at a time if at all. Simple is better.All the impressive terminology and what do you have.Smart sounding chart readers. You are always reading past preformance. The first question is what percentage of times does that pattern produce the desired results. It needs to be at least 70%. Learn the patterns of a couple stocks and milk them if your day/swing trading.. Dont overthink it. You will only loose sleep. Have a balanced disiplined approach. Dont gamble your hard earned money foolishly. Look up swing-trading-club videos. Great primer. TV
Gents, from a TA perspective flags are generally what you look at on shorter period charts than the daily, but if you want to call the pullback which ended five days ago, I guess you could. After five days up, we are in way overbought territory on the ten day CCI and macd is turning over. That does not mean that fundamentals and increased demand coming from all the news does not mean we don't go higher before the pullback. The bigs getting in now can afford to dollar cost average and buy now when those of us with limited funds are best off holding and waiting to buy on dips. With respect to an ascending triangle, we would have a beauty if we get a pullback from here back to the nines before the breakout. You have to go back to June 27 on a 15 mn chart to see a good ascending triangle formation. The stock moved up to over nine in the am, pulled back, got back to nine, pulled back less and then broke out on the next move up to the nines. The psychology is that after the move up, you usually get a consolidation of the gains. The next move up gets back to earlier resistance and again consolidates but the buyers get in quicker and don't let if come down as much as the time before. That is the hypoteneuse (or however the damn word is spelled) of the triangle with the highs being the flat line top. The second pullback is usually a great entry for traders because you can keep a tight stop. Thereafter the buyers overwhelm the resistance and you're off to the races. Short sellers love to see an ascending triangle after an extended move because they can then (with enough juice on a low cap stock) overwhelm the buyers and trigger their stops. Often the bigs will either sit back or join the shorts in order to accumulate lower, knowing that most neubie daytraders try to buy a break out and will cover at some point if they are smart.
Finally, the last five days would be a bear flag, not a bull flag were we in a down trend as flags move against the trend.