Registered User
Joined: 4/10/2006
Posts: 954
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Cond 23.62 Buy above.
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Registered User
Joined: 9/22/2005
Posts: 849
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MNTA has good potential - up to about 40% profit. Just wait for the flag to form and price to break out.
It’s worth watching. Thanks for posting it
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Registered User
Joined: 12/2/2004
Posts: 1,775
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I like MNTA too and like you really like to find good flag setups. Other flags I'm watching are ISLN, IDSA, NZ, LCC, with a small starter position entered in ISLN late Friday as it flashed a 1234 signal (price move/close above highs of last bar in a four or five day flag.
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Registered User
Joined: 1/8/2005
Posts: 118
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How long do you wait for a bull flag pattern to breakout before you abandon it?
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Registered User
Joined: 9/22/2005
Posts: 849
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I watch it as long as it is making the flag. If the price breaks out above the flag, I buy. If the price breaks out of the bottom of the flag, then I move on to something else.
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Registered User
Joined: 9/22/2005
Posts: 849
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I watch it as long as it is making the flag. If the price breaks out above the flag, I buy. If the price breaks out of the bottom of the flag, then I move on to something else.
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Registered User
Joined: 4/20/2009
Posts: 51
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A couple more that might fit.
HS, AGP, ASPS
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (3rdeye) A couple more that might fit.
HS, AGP, ASPS
Agree, good ones to watch 3rdeye. I had HS on my watchlist too, just added AGP, thanks for heads up.
One I'm watching that be be setting up is QCOR.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Looking at MNTA this morning price has dropped down to recent support of 21'ish on very textbook like volume contraction since the huge breakout day. Conventional wisdom says to buy or add on break out of flag high and i agree. others say to nibble at a 1234 type signal. Those are all fine assuming that flag's price range high to low is in the ideal 10-15% box. But it's 25% from flag's current low to high, and in this case I like the old tried and true method of a first buy at a well defined support area. I just took a teeney weeney starter size on the bounce off day's low using a five minute bar's tail/hammer to key on, at 10:20 mark. Maybe not a good idea, but stop is close by at 20.70, flag's low. Hope to add at some point. Initial target would be flag's high of 26 area. Opinions?
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Registered User
Joined: 1/8/2005
Posts: 118
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Could you explain what 1234 type signal is? Thank you.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (lsaloga) Could you explain what 1234 type signal is? Thank you.
It's a method of entering on a price pullback, especially after a stock has made a rapid advance of only a day or just a few days and with heavy volume. The thinking is that the stock now has new momentum and will only need a brief rest before going again. Usually involves a flag or pennant setup. Actually it can be called a 12345 or 123456 setup. The key is to watch for a nice drooping flag with successive lower highs and lower lows. Ideally with diminishing volume and with tight daily ranges and depth of entire flag being no more than 15% high to low. It's almost identical in structure to William O'Neil's description of the handle in a cup/handle pattern. Then if on day 4, 5, or 6 price takes out highs of previous day it's a buy signal, especially if volume perks up. Some traders such as myself would use the signal only as a partial buy of about 1/3 position size, witha hopeful add or two if price takes out high of flag. The flag need not be perfect, i.e. it can have say on day 2 or 3 a move higher than previous day, but it's too soon to buy at that point as it's best to have at least 5 days of flag building. Google 1-2-3-4 trade setup and you should get some hits.
A good example imo is ISLN, as it formed a flag and gave a 1234 buy signal on 7/30 as it took out previous day's high. It looked like a good trade with price action next day but has since gone back into consolidation.
I think QCOR is setting up with a nice tight ranging little flag, but it's form may not work with the 1234, just a simple break of its high.
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Registered User
Joined: 4/10/2006
Posts: 954
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This flag is broken. Call it a buffalo hump or a dying quail... certainly not high and tight.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (wwrightjuly4) This flag is broken. Call it a buffalo hump or a dying quail... certainly not high and tight.
LOL, okay, I'll call it that too. One of my favorite flag's went wrong way too, QCOR on Friday...it recovered some but no longer a top fav, but not quite broken enough to remove from watchlist.
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Registered User
Joined: 4/20/2009
Posts: 51
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HS looks like textbook example.
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Registered User
Joined: 9/22/2005
Posts: 849
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These look like they look like they are developing flags and bear watching.
SIMB
ARNA
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Despite recent negative market action I'm monitoring a few bull flags that are holding up well. Some are textbook with tight congestion and lowering volume, others got sloppy but have since repaired themselves. This list about half vs. a week ago. No position in any.
RADS, CATM, NANO, BBEP, QCOR, ISLN.
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