Swing Trading Strategy in Today’s Market – Our Fav
As a bull market matures and gathers strength, one of the best technical setups is the bull flag pattern.
If you are swing trading with a 9 to 5 job, this is working great right now and can be played with a tight stop-loss with huge upside potential.
Its a great strategy if you want to keep your full time job and income while you build a small account quickly. It also works great with free brokers like Robinhood.
And if you are trading full time, you need to have this on your radar because you often get excellent intra-day technical patterns near the breakout point of the bull flag on a daily candlestick chart.
This strategy and “multiple time-frame alignment” involves finding great trends, consolidations and ideal technical entry points on a long-term daily chart and an intra-day chart.
We want to find great entry points within bullish trends (if going long) that day traders, swing traders and investors will jump on all at the same time. This often produces an explosive move higher.
A bull flag breakout on a quality growth stock with a strong catalyst offers the best trading opportunity in the market right now in my opinion.
On Thursday we caught MDGL breaking out of a bull flag pattern just before it ran up nearly 50% within 24 hours. Some of these opportunities can be pretty incredible during bull markets. MDGL looks ready for a pullback at this point.
In prior videos I talked about featuring SEDG in the Daily Alert just before a big 25% move higher within a few days out of a bull flag pattern on a higher quality, less speculative stock.
Most trading “experts” will not make the distinction between a flag pattern and a bull flag pattern. We use the term “bull flag” to refer to a stock that has nearly doubled in price within a couple months or so before the flag consolidation.
The trend leading into the chart pattern, the way it consolidates and for how long and the story behind the move are all key.
Most stocks that make that kind of move fall quickly and its a fools errand in most cases to guess which one will make the initial move. Maybe one in a thousand will make the initial move so its pointless from a technical standpoint to try to identify which one will.
However, in my experience the few stocks that make the big move, then have a well-formed consolidation and break out strongly are much more likely to make a big move afterwards from the breakout point from a pure technical standpoint.
Again, it depends on how they consolidate, the long-term trend leading into the bull flag pattern and whether there is a recent or upcoming catalyst. Most stocks under $10 will turn over quickly after the initial pop. Most big moves do not set up a quality bull flag pattern and should be avoided.
But quality bull flag patterns are starting to really take over as the swing trade (and day trade) of choice in the current market. So much so, I’ve decided that the bull flag pattern and trend analysis will be the next release in our master trader series of online video training courses.
The first edition of the master trader series covered the explosive bottoming pattern. The second covered the earnings eruptions trade which went on an incredible run again this quarter.
Now I am about to teach the most explosive swing trading technical pattern the current market offers.
Over the past year I have been fine-tuning this bull flag strategy for those who want to trade with a big position size with a tight stop to go for huge profits. And also for those who want the highest win percentage with a wider stop.
The choice is yours but you need to know how to find the ideal stop-loss point, target, best stocks, trends and consolidations to have a good shot at massive success with this strategy.
Stay tuned for the release date to be announced in the days ahead along with new upgrades and features on the site.