Flags, Pennants - my interpretation

rsd886647

Active member
Mar 24, 2009
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#1
Hello,

I'd like to post my strategy, which utilises flags and pennants, although I have probably bent the rules a little and so would like some feedback on whether what I am doing is valid. Thanks.

In this first trade, price was in an uptrend, a new high formed, then price pulled back in a flag-type formation (a pole was in evidence). I like it when price action accompanies these signals and here we had a small pin bar at the end of the retracement. Buying the breakout of resistance would prove to be a good move.

Rob
 

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Likes: tomorton

rsd886647

Active member
Mar 24, 2009
205
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#2
Bund bull flag

In another example of a bull flag (my interpretation), on the German Bund chart, we can see perhaps the start of an uptrend, there must be at least one month's of buying for me to consider a signal.

Would appreciate your feedback.
 

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Kaeso

Active member
Oct 4, 2015
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#5
Cool... but i think these are also simply examples of nicely trending periods where jumping in on a pullback was always going to be sweet if you followed a sound plan :)
 

rsd886647

Active member
Mar 24, 2009
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#6
Cool... but i think these are also simply examples of nicely trending periods where jumping in on a pullback was always going to be sweet if you followed a sound plan :)
Thanks Kaeso for commenting. I would say that the Bund and Nzdusd trades were at the start of the trend. One that isn't is West Texas Oil, which I am looking at now. Post to follow.
 

Brumby

Well-known member
May 25, 2012
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#8
This may or may not eventuate, but it is on my watchlist for now.

Comments welcomed.
Entry is only one component in the overall equation. What is your exit plan, is it some form of trailing or measured move? Take for example, the NZDUSD trade - what was the overall trade plan?
 

rsd886647

Active member
Mar 24, 2009
205
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#9
Hi Brumby,

Thanks for the question. If I can use a previous Bund trade, because I am currently in a trade on this chart, this is my exit plan...I should add that I will also monitor the MacD for signs of trend exhaustion if I am say up by 5x my risk, and may exit manually in that scenario.
 

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Brumby

Well-known member
May 25, 2012
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#10
Hi Brumby,

Thanks for the question. If I can use a previous Bund trade, because I am currently in a trade on this chart, this is my exit plan...I should add that I will also monitor the MacD for signs of trend exhaustion if I am say up by 5x my risk, and may exit manually in that scenario.
Cool. Was the BB cross only a partial exit since you mentioned that you still have an open position? What is the trade plan on the remaining position?
 

rsd886647

Active member
Mar 24, 2009
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#11
Hi Brumby,

Sorry, I did not explain well. My example was a past trade. I am now in a new trade as shown on my first page. I am nearly 2xR up. I will trail my stop, moving to breakeven hopefully when the markets are open again. Thanks for the question though.

Rob
 

rsd886647

Active member
Mar 24, 2009
205
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#12
A signal - Brent Crude Oil

I did have West Texas Oil on my watchlist and posted a chart here in this thread, but that signal is not as developed as this Brent Crude Oil signal, which looks ready to go.
I will look to trade this signal instead IF it breaks up past where my buy stop will be.
 

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rsd886647

Active member
Mar 24, 2009
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#13
Wedge pattern

A new pattern I will be looking to trade as and when I see it is the wedge pattern, as a continuation of trend. It is similar to a flag pattern and I will set a take profit of 1:2 should I make a trade. This is an example of it:
 

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rsd886647

Active member
Mar 24, 2009
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#14
I've spotted a triangle that formed before my Brent Crude Oil bull flag trade, this would have been a better entry. I hope there's still bullish momentum in this market.
 

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