Flags - Just Basic Volume & Price TA
 

Flags are seldom appearing "old school" TA.

Here are 3 recent flags. Which Way from here?

The rule about flags is the move out of the flag should be equal to the pole.


http://www.tradepointtechnologies.com/Flag7.jpg

Re: Flags - Just Basic Volume & Price TA
 

the other two times (left of chart) when the price spiked up, a small flag began, but then price went down. It could be indicative of what is to come, but I think we'd need to see volume levels to decide strength. All-in-all, if price goes up, you have resistance up ahead.

Also, you don't really want to get in until the price breaks. Guessing which way it is going to break is usually a losing proposition.

I think the flag will break down, what do you think?
 

http://www.tradepointtechnologies.com/Flag8.jpg

Here is my analysis and I say down: what is yours?

Re: I think the flag will break down, what do you think?
 

Where is your analysis?

Re: I think the flag will break down, what do you think?
 

If flags are old school I need to go buy a walker.

I don't trade the ES anymore though, but I still think I need more data to answer that question. I can tell you right off it's not something I would play either way though.

"The trick is, when there is nothing to do, do nothing."
-Warren Buffett

Re: I think the flag will break down, what do you think?
 

Those aren't flags the way I've seen them defined.

Re: I think the flag will break down, what do you think?
 

[ QUOTE ]
Those aren't flags the way I've seen them defined.

[/ QUOTE ]

The first two don't look like flags but the last (current one) does sort of. Key is that you don't do anything until it breaks out which would be up in this case. Today's action (down so far) could either ruin or confirm the formation but with this kind of pattern you wait for the breakout. Frontrunning these kinds of things is a fools game.

Re: I think the flag will break down, what do you think?
 

These are 'boxes' per Nicholas Darvas "HOW I MADE 2MM IN THE STOCK MARKET". These are not classic TA flags per se-- these 'flags' have no slope.

Flags are counter-trend parallelogram patterns that slope against the trend. They are among the most common and reliable of patterns for finding good entry in an existing trend.

See:
TECHNICAL ANALYSIS OF THE FINANCIAL MARKETS by John Murphy, page 140-145.

Re: I think the flag will break down, what do you think?
 

Question for the OP... Just wondering why you are trading the ES on a daily chart. There is so much liquidity that a TA trader can easily trade intraday using 5 minute bars, and probably with much lower risk. And its like 8 tabling vs. 1 tabling. Thanks.

And you mentioned volume in your title... "basic price and volume ta," yet I see no volume on this chart. If you repost w/ volume I'll toss my opinion into the hat.

Re: I think the flag will break down, what do you think?
 

[ QUOTE ]
These are 'boxes' per Nicholas Darvas "HOW I MADE 2MM IN THE STOCK MARKET". These are not classic TA flags per se-- these 'flags' have no slope.

Flags are counter-trend parallelogram patterns that slope against the trend. They are among the most common and reliable of patterns for finding good entry in an existing trend.

See:
TECHNICAL ANALYSIS OF THE FINANCIAL MARKETS by John Murphy, page 140-145.

[/ QUOTE ]

Exzackly. The chart in the OP doesn't really have a trend, and those are flat trading ranges (channels) instead of flags.