How to Identify the Most Bullish Chart Patterns

 

A lot of the biggest moves in market history really got going after a breakout from a very bullish chart pattern.

 

We featured TSLA early in 2020, SMCI in 2023 and SNDK at the start of this year in our favorite chart pattern.  The high tight flag.

 

SNDK may be one for the history books on more reliable stocks over $20.  It was our first top pick of 2026 and is up over 600% at this point.  Easily beating the #2 stock in the S&P 500, MRNA, which is up 393% so far in 2026.

 

In our recent boot camps, some customers were not clear on the consolidation rules after going through live examples.  In this blog post we will go over what exactly is a high tight flag using the rules in our #1 strategy for rapid account growth.

 

Momentum Trading Works Better When the Stock has a LOT of Momentum

 

There are stocks that are outperforming in any market and there are stocks that are absolutely crushing it.

 

We want to find the ones leading the pack while forming narrow consolidations after an initial very large move higher.

 

A few stocks will go up 90% or more within 10 weeks.  However, most of those will crash down suddenly.  This is often because they are lower priced stocks being manipulated.

 

We only care about the ones that can hold a narrow consolidation.  In other words, instead of crashing down suddenly they pull back slightly and gradually.  This avoids nearly all of the pump and dump rug pulls that have low win rates with more risk.

 

What a Narrow Consolidation Really Means

 

After reaching a peak, we want to see the stock retrace 35% or less of the move from low to high over the prior 10 weeks.  We start counting the weeks from the high in the flag backwards 10 weeks.  Then find the low over those 10 weeks.

 

If the stock did not move at least 90% higher over those 10 weeks to form the high in the flag, then we move on to the next stock in our screen.  We can just multiply the low over the 10 weeks by 1.9.  The high in the flag should be at or above that level.

 

If a stock retraces 35% to 61.8% of the move higher in the flag portion of the pattern, we need to see the stock consolidate at least 5 weeks before a breakout.

 

When We Trade a High Tight Flag

 

Very few stocks are in a true high tight flag at any given time.  Of the ones that are in a high tight flag, many will move lower and not break out for a long time.   If ever.

 

Of the ones that break out, we only trade a small percentage of those stocks.  They have to pass all the criteria pre-market on the day of the breakout.  Only about 20% of them will pass our tests in decent market conditions.

 

The ones that do not pass our tests have a low win rate in the current environment so be sure to do the research and back testing if developing your own high tight strategy.  Come up with a set of criteria that delivers a better win rate.

 

The ideal ones for us come up about once per week on average or maybe 50 per year.  Plenty of trades to have a great year trading with just this one strategy.

 

This brand new video shows some good examples along with some high tight flags that are setting up now.

 

 

 

 

New Back Testing Results

 

Sticking with the highest percentage ones talked about in the rapid account growth videos has been the way to go in 2026.  We have a set of rules for an acceptable high tight flag and another more stringent set of rules for the very best ones.  This is where we want to stay for now.

 

Its like night and day.  If you trade the lower priced stocks below $20, for example, good luck.  Also, not having overhead resistance is more of an advantage than normal.

 

Those looking to do well during the remainder of the year can check out our new videos on handling the 2026 market and beyond.  How to get a very high win rate in the current market is covered in detail.

 

New Video Training Course

 

Those who purchased the rapid account growth course, high tight flag course or boot camp will be given a special deal on this latest research and great new tactics for rapidly growing a small account including

 

• A brand new strategy that is performing as well as our top breakout strategy.

 

• How to get the very high win rate that is crushing other breakout strategies in 2026.

 

•  New very effective exit strategies and set of rules on when to use them.

 

• How to use a certain type of after hours trade to greatly increase your profitability this year.

 

• How to handle leading areas of the market like AI chip and memory stocks that many traders are finding difficult to handle.

 

Some experts are calling for the biggest rally of our lifetime after the next market pullback or correction.  Possibly starting as early as next month.  So this will be great timing as we get closer to what historically is the best time of year for stocks – fall and winter.

 

The new videos will be released soon to existing customers.  Be sure to check your email for the upcoming release date.

 

 

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