5 Responses to Solar Stocks Making High Tight Flags
S and P Q1 earnings forecast.
solar sucks! i missed the multi month ramp,
PACB looks the most interesting – potential takeover target
Woodshedder, once ur screen has narrowed down a series of flags like this..what qualifies them further for you to initiate trades?
Bulkowski waits for a breakout 1 penny above the highest high of the flag pole. As best as I can tell, this is the highest intraday high, and not the closing high.
However, what I really like is waiting for a flag low to be established. Once that low is not broken for 3 days, a trade is established, with a stop just beneath the flag low. At that point you are in the trade and waiting for it to breakout.
Because I am more comfortable trading mean reversion, I like the second method better, but because I have not been able to backtest the first method, I cannot say for sure which one is better. Bulkowski swears by the first method.