Wednesday, December 7, 2016
Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,862 Blog Posts

Cutting it High and Tight


At the risk of stealing the formidable Woodshedder’s thunder (that may or may not be him getting a haircut above), I have seen quite a few high and tight bull flags pop up on the charts lately. Recently, I have been doing a video chart request series for 12631 subscribers, where members ask me to look at a few charts and I talk them through my analysis. Thanks to our talented community, such as @deberts and @thewife (there are plenty more excellent traders), below you will find two classic high and tight bull flags to consider.

Regarding what a high and tight flag is, after a sharp move higher, you are looking to see how a stock comes to terms with that move. If there are wild price swings and/or if there is a high volume selling affair, then the chart usually becomes too sloppy to swing trade. If, however, the stock quietly digests the big move on declining volume and tight price action, then the possibility of a secondary breakout higher increases substantially. The latter scenario gives us the high and tight bull flag look. Hence, you will always want to be on the lookout for these types of patterns, especially when the broad market is constructive and breakouts are more likely to be successful.



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  1. PositvePsych

    Brilliant – straightforward – picture perfect in terms of a nice tight entry.

    Any analysis you might share in regards to manageing the trade once it becomes a winner, would be appreciated. For example, in a move that’s working (let’s say short-term swing), I am trying to be more consistent and disciplined in terms of selling some into strength and moving my defensive stop up to the previous days low of the day, or a break even point once profitable and the price action moves against me.

    Does that make sense?

  2. Chris

    I remember my drill sergeant telling me to “lean into the buzz”.

  3. GYSC

    Thanks Chess! Need to get settled back in to do some work this week.

  4. chivo

    High and tight and you miss our best friend, stevie wynn !??!?

  5. Yogi & Boo Boo
    Yogi & Boo Boo