Barely over long entry level for the C&H pattern, but I think I see a bull flag forming..
Stocks that are bullish may form a flag on their pull back...then again the pull back can keep on going. We just never know. I took the pole, using the magnet and placed it point up from the support line of the flag. This is a ball park way to see how far a flag may go.
This flag is tight right now, which is better than a loose flag that has lots of space between candles. The flag is not too heavy for it's pole at this point either.
There is also a cup and handle pattern, but if trading the flag, some would enter upon break of the red resistance line and place a stop below the green support line of the flag..
This one is just barely over long entry level for the cup and handle pattern. Market feels to be teetering somewhat..so be safe.
Having a trading plan can really help and writing it down and following it makes it even better (o: If you do not follow a plan, then you have no idea what to do when the security moves against you. Looking at the target you may can acquire when you buy the security to see if it is worth the trouble, as well as how close it is to support when you buy it also helps. TD Ameritrade has an alert so that it will text you when a stock hits a certain price. I love this feature and I think most platforms have this. Writing out steps you would take each time you buy, like looking at the earnings date, possible profit, support, draw it out on the chart, look at the long term charts and shorter term charts, getting an idea on sentiment surrounding the security, why you want to buy this particular security...
These are just examples and we are all different. Knowing what kind of trader you are can be important as well. Do you prefer day trading, long term investing, swing trading? Do you prefer trendlines and/or technical indicators? Which technical indicators you prefer can be in your plan. I know I am a swing trader and also a pattern trader, but it took a while to figure that out (o: Also, how much time do you have to spend on trading can make a difference as well.
You can log the day you bought it, why you bought it, how much you made or lost on the trade, why you sold it, and maybe what you learned from that trade..
As usual, this is by no means a recommendation...
Having a plan helps keep us in check and it is like practicing the same plan over and over, tweaking it here and there til you get it just how you want it.
You have to have chips to play, and if you lose all your chips, you cant play anymore )o:
Stocks that are bullish may form a flag on their pull back...then again the pull back can keep on going. We just never know. I took the pole, using the magnet and placed it point up from the support line of the flag. This is a ball park way to see how far a flag may go.
This flag is tight right now, which is better than a loose flag that has lots of space between candles. The flag is not too heavy for it's pole at this point either.
There is also a cup and handle pattern, but if trading the flag, some would enter upon break of the red resistance line and place a stop below the green support line of the flag..
This one is just barely over long entry level for the cup and handle pattern. Market feels to be teetering somewhat..so be safe.
Having a trading plan can really help and writing it down and following it makes it even better (o: If you do not follow a plan, then you have no idea what to do when the security moves against you. Looking at the target you may can acquire when you buy the security to see if it is worth the trouble, as well as how close it is to support when you buy it also helps. TD Ameritrade has an alert so that it will text you when a stock hits a certain price. I love this feature and I think most platforms have this. Writing out steps you would take each time you buy, like looking at the earnings date, possible profit, support, draw it out on the chart, look at the long term charts and shorter term charts, getting an idea on sentiment surrounding the security, why you want to buy this particular security...
These are just examples and we are all different. Knowing what kind of trader you are can be important as well. Do you prefer day trading, long term investing, swing trading? Do you prefer trendlines and/or technical indicators? Which technical indicators you prefer can be in your plan. I know I am a swing trader and also a pattern trader, but it took a while to figure that out (o: Also, how much time do you have to spend on trading can make a difference as well.
You can log the day you bought it, why you bought it, how much you made or lost on the trade, why you sold it, and maybe what you learned from that trade..
As usual, this is by no means a recommendation...
Having a plan helps keep us in check and it is like practicing the same plan over and over, tweaking it here and there til you get it just how you want it.
You have to have chips to play, and if you lose all your chips, you cant play anymore )o:
Comment:
Some people take the pole and place the pole on the top trendline to estimate a possible target. I use the bottom trendline to place the pole, we are all different. And this is just a ballpark estimate of the target to get an idea if the flag is worth trading.