The Flag-Trader trading package was released this week and is already creating something of a stir among traders – as far as that is possible in this week of market turmoil! As Flag-Trader actually takes profits from volatility either up or down then even the most dramatic of recent events are safe trading opportunities with the right protection in place.
Flags are among the earliest chart patterns taught to new traders but it would be a mistake to dismiss Flag-Trader as being for beginners. No, it's a strategy for traders who want to make profits – and to keep hold of those profits once they are made.
While Flag-Trader addresses the needs of the beginner with a combination of simplicity, clear instructions and the essential ingredient of access to Guy's own online software, he addresses the needs of every trader by showing clearly how to avoid losses, secure profits and to ride the big winners.
Among several powerful tools that Guy has added to this conventional flags technique is his proprietary Traderfinder software tuned to identify a small number of candidate flag trades that gives real value to this package.
Scouring all of the markets to identify a small number of candidates flags to review manually and apply the training in entry, exit and trade management this tool ensures that it does not take long to place trades that are very safe – but also have the potential to ride the big moves into substantial profit.
Guy gave us access to a pre-release version of Flag-Trader that has been the source of my comments on this site. Check out the 'What You Get..' section in the right column to find out what's inside the box and read the full Flag-Trader Review page.
Don't forget to sign up (top right corner) to be among the first to get new information as soon as it is released.
Stop Press: The Flag-Trader sales site is now open for business at www.flag-trader.com
There's nothing quite like a happy customer to make users feel good about a product.
One of Guy's customers has been trying out Flag-Trader and came back with the following:
From: Michael
Sent: 15 September 2008 21:06
To: Guy Cohen
Subject: Open interest! yeah baby!
Hey Guy!
Still going through the flag trader course but thought I'd let you know about my first foray into trading flags and open interest.
Found GAP on flagtrader (bear flag). Usual suspects seemed in place (trending, open interest, huge put disparity) so I set a contingent order for a couple of puts if it broke downwards.
This was my trade journal entry prior:
"Nice bear flag. No news except that there might be a clandestine takeover coming evidenced by increased volume (article from news section). General down trend. Coverage initiated recently so ppl will be watching the stock. OPEN INTEREST on the puts 1400, on the calls 25… TYPE OF ORDER(PUTS): Contingent upon GAP less than 12.60 – Good Until Cancelled Trigger type : last."
To be honest I'd almost forgotten about it until tonight when I casually checked my optionsxpress account and my balance had jumped up!
Stock is now at 8.84
Puts cost 3.2 each – now valued at 6 bucks so its 87.5% gain, and counting… in two or three days!
Woooohooo!
Going to take half off and then ride it down on a trend line and see how far I get.
Don't know if I got lucky, but by Jesus I have hope!
Pity i'm still virtual trading… anyway feels good.
So it looks like first impressions from users are pretty good.
I'm currently working through Guy Cohen's new Flag-Trader product in order to produce the final review.
In the meantime, you can find the work in progress being listed by disk content in the 'What You Get..' pages in the right hand column.
Currently there is information on the Flag-Trader Introduction and chart patterns. More to come in the near future.
Watch this space.
Bear Flag Chart Pattern
The bear flag pattern is the opposite to the bull flag in that the configuration is the same but it is found in a downward trending stock. With the bear flag the shape of the flag and flagpole is inverted as though upside down.
The bear flag is a continuation chart pattern in which the price slightly retraces the preceding decline in the downward trend.
The sell point is when price breaches either the lower trend line of the flag area for an aggressive trade or the lowest price reached in the flag area for a more conservative approach, ideally with increasing volume indicating that the market sentiment is to continue downwards.
For a true flag the pattern has highs and lows which can be connected by small parallel trend lines
