Question for Chris Terry re: Flags

Discussion in 'Trading' started by Nicodemus, Nov 30, 2001.

  1. Chris

    I wanted to start a new thread for this subject as I would like to get as much input as possible. You stated in another post that flags had a 70 to80% winning ratio. I almost choked on my martini when I read that. I have never read anywhere of any patterns that had that kind of percentage. Since your mentor is one of the best I must assume that you know whereof you speak. What puzzles me is why isnt everybody trading that one pattern alone since that kind of percentage is almost a guaranteed winner for an experienced trader. Are there any statistical studies anywhere to back this up? Or do you mean that in the hands of an expert trader, this pattern could possibly reach this percentage? LBR says that her winning percentage is about 70% which I would think is about the upper limit. Are other type trades bringing her percentage down? I havent read all the stuff on your site but I will this weekend. I certainly want to dig into this a little deeper.
  2. In the book How to Make Money in Stocks by William Oneil
    he talked about HIGH tight flags that rarely occur but usually work about 80% of the time

    Robert Tharp
  3. Commisso

    Commisso Guest

    Flags high and tight work lovely on an intraday basis, my hit rate with them is in the 70-80% range with an avg gain 3 times larger than my losers... (In an accomadating market)

    The ideal set-up would be stock that makes a substantial morning move and then basicly goes sideways in a very tight range during the doldrum and early afternoon sessions...
    You want volatility and volume to substantialy contract...
    Also pay close attention to the RS vs the indexes during the time your stock is consolidating...
    I find that a breakout from this pattern is much more reliable post 2pm...

    PEACE and Good Trading,
  4. vitajex


  5. I thought Bulowski identified a C&H pattern as being more reliable than a flag. Any percentage ratings for other patterns?

  6. Commisso I agree with you about the intra-day flags it works particularly well with high % gainers.

    They can often develop into a tight consolidation pattern and ether continue there run when the volume picks up in the afternoon or break support and give a nice selloff.

    :) :)