Flag pattern can provide you explosive moves. Flags are excellent chart pattern trading candidates; they're generally small, which means relatively small risk and quick profits. You need to identify them properly.
You mean like the one that is Currently at WTI OiL Derivative A typical example of Flag Patterns not wanting to breakout in either direction.
he-he i do not bite patterns that discussed here (flags for example) are visual patterns, they look similar, and therefore can be found on charts i do not use visual patterns, i use set of rules which rarely reflected visually similarly on charts, therefore i do not called them patterns
B1S2... I told ya I'd post one real-time when it happens....here ya go, I just screen grabbed a good one. This is FB today with 25M shares already traded. Imagine if you shorted @ $163 and then set a stop with a giant wide window at $164 or anything in between. All the shorts with programmed stops just got f*ck'd.
I take your point, but that spike is well within the noise and I think a stop as you describe would be too closely placed anyway.
Ok does it happen enough to warrant not using SL’s? Or are you campaigning for really wide stop losses to avoid such senarios? The market is always probing to find value. Sometines the probes are deeper and larger.