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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (21776)	8/1/2002 5:16:53 PM
From: Susan G	Respond to of 26752

This is why I'm always posting about bearflags <g> mywebpages.comcast.net In a downtrending market, these and rising wedgies are the best short set up there is, as well as great for scalping up and down while trapped in the flag. The longer the time frame - the better they seem to work. Today's was in a 30 and 60 minute, and they way it held for hours really formed a perfect one. The little five minute and 15 minute ones are scalpable, but you have to be quick. The best kind are after a rally when the market is really overbought and a down move takes hold, like the one this morning, yet longs still want to buy every dip. One of the reasons I always post them here is as a warning -because I see everyone getting bullish that the market is making higher lows and higher highs and moving up. But they are quite the bull trap, because those higher highs are heading right into over EMA resistance, and if after a few attempts they cannot break it, they do the swan dive thing <g> On the futures, sell stops below and buy stops above the flags in case of a breakout to the upside or downside work well. Whichever way the flag consolidation breaks, you are in on the move. And as far as stops if short the thing, a buy stop above whatever resistance is above the top of the flag - usually the 20 or 50 ema, works well. On wedges as they get steep, a buy stop below the top of the wedge works great - any break of the wedge and you are filled as it breaks down. And they always break fast... This move on the chart is 1 /12 legs down. Usually with this type of chart pattern there are 3 bearflags, and three legs down. So we may have some more downside tomorrow, filling the COMPX gap the rest of the way.