FIRE Flag and Pennant Target 57.50

702 12 16
FIRE stock sure is on fire. The Descending Wedge was pointed out a few days ago by christopherbrecher. The pattern had a +16 or 57.50 price target. This also true with the new Flag & Pennant pattern that has developed. What should have tipped chartist to go long was the rising MACD with lower lows forming in the chart.

Disclosure: On Tuesday I entered a large deep near date out-of-the-money OTM long strangle position in FIRE .

*Large gains for the long strangle option strategy is attainable when the underlying stock price makes a very strong move either upwards or downwards at expiration.


Here is more information about F&P patterns
High and tight flags are the best performing chart pattern in both bull and bear markets. Even though the break even failure rate is 0%, this pattern does fail. Don't count on making a 69% average rise either. That's an average of hundreds of perfectly traded trades, something no one can do.

Measure rule: Compute the height from the start of the price swing (point A in the measure rule figure to the right) to the end of the price swing (B) and then take half of it. Add it to the bottom of the flag (C) to get the target (D).

Breakout: Only buy when price closes above the highest peak in the chart pattern (including the flagpole). That is point B in the Measure Rule figure to the right. Buying sooner risks price never confirming the pattern (in other words, price drops or moves horizontally for months). And yes, I know this is different than what I wrote in my book. HTFs fail too often when using a flag trendline break . Instead, place a buy stop above the highest high in the chart pattern.

Looks like Super EW Wave 5 (1) 3 of 5 has ended. We can now expect some sort of light correction before next run.
+1 Reply

How much money did you make on this?
We are really looking good today.

If you bought 55 Call Options when I suggested you are racking up the bags!!!
knock QuantitativeExhaustion
way to go, master JR!
thanks.. not a master yet. Just a Pro
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out