My favorite setup is a high tight flag,
On a fast moving but liquid instrument,
Within a bull market and a strong industry.
Because … If a stock makes one leg at +100%,
Retraces -20% then it can go +80% from the high.
It’s a 4 to 1 trade with 50/50 probability.
In the meantime you can improve your worst case + double down once the price makes a higher low.
On a fast moving but liquid instrument,
Within a bull market and a strong industry.
Because … If a stock makes one leg at +100%,
Retraces -20% then it can go +80% from the high.
It’s a 4 to 1 trade with 50/50 probability.
In the meantime you can improve your worst case + double down once the price makes a higher low.
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