Keep it simple, draw your resistance line and place a buy stop over the line and get filled. Put your stop at a level of support that makes sense. Once you are fill move your stop up to a point under the break out, or the low of the day. This is how I trade flags. I have used PatternExplorer for AmiBroker and it is a great way to find flags setups. http://blog.mtrig.com/post/Part-I-Scanning-for-Chart-Patterns-for-Swing-Trades.aspx
======================= DareToTrendTrade;-HI; Trend trader, good question; 1st]Plenty of money has been made on low probabilities, so there is more than 1 RIGHT WAY to trend trade. ========================================= If that a big bank, like BAC, C sector i have a bearish bias; so there are many factors. If its gold I am bullish. But having looked @ SPY a 10 year CANDLE... Since its SPY related, I am somewhat bullish, for sure its a bullish bias season,4th quarter. BUT frankly SPY IS HI/HIGH priced , so even if WE ARE right, profitable;frankly i would look for a better trender to trend trade.QQQ trends better/bigger in etfs if you dont mind the bigger roller coaster[UP & down] ========================== Actualliy i prefer HI percentage trends as opposed to HIGH priced TRENDS.ItSPY,QQQ,DIA is probaly going higher before Christmas.Merry Christmas/hannukah