Flag/Pennant Patterns - NinjaTrader | futures io social day trading
futures io futures trading


Flag/Pennant Patterns
Updated: Views / Replies:3,386 / 6
Created: by bellair Attachments:2

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Flag/Pennant Patterns

  #1 (permalink)
Elite Member
Montville, New Jersey
 
Futures Experience: Beginner
Platform: NT
Favorite Futures: CL, TF, NQ
 
Posts: 18 since Jul 2011
Thanks: 4 given, 0 received

Flag/Pennant Patterns

Does anyone know where to find an indicator that automatically displays bullish/bearish flag and/or pennant patterns in NT?

Reply With Quote
 
  #2 (permalink)
Market Wizard
virginia
 
Futures Experience: Intermediate
Platform: ninja
Favorite Futures: ES
 
cory's Avatar
 
Posts: 5,218 since Jun 2009
Thanks: 628 given, 6,316 received
Forum Reputation: Legendary

flag from jan arps
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 2 users say Thank You to cory for this post:
 
  #3 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,697 since Oct 2009
Thanks: 3,041 given, 4,496 received


You might find this tool interesting:
Chart Pattern Recognition Forex and Stock Screener Finds Chart Patterns Fast

Reply With Quote
The following user says Thank You to trendisyourfriend for this post:
 
  #4 (permalink)
The fun is in the numbers
Point Roberts, WA, USA
 
Futures Experience: Advanced
Platform: IB and free NT
Broker/Data: IB
Favorite Futures: ES
 
aquarian1's Avatar
 
Posts: 3,236 since Dec 2010
Thanks: 1,165 given, 1,752 received
Forum Reputation: Legendary

I realized you asked for Ninja but I have no answer there.
Below is an example of TD Waterhouse (Cdn) technical - power by Recognia.
As you are in the USA the TD waterhouse is much more fully featured and has futures, I believe.

How Recognia does this, the pattern recognition, is beyond me - but a very impressive piece of software.
One of the good things (see educational text below) is "items that support" and "items that refute."

As a lover of classical patterns I feel it is best to print out charts and mark them with patterns yourself (but hey that's just me! .

Happy hunting.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).




---------
Event® Educational Material
[Print] [PDF] [Email]
Learn

Flag (Bullish)
Classic Pattern



Implication
Description
Important Characteristics
Trading Considerations
Criteria that Support
Criteria that Refute
Underlying Behavior

Implication

A Flag (Bullish) is considered a bullish signal, indicating that the current uptrend may continue.

top

Description

A Flag (Bullish) follows a steep or nearly vertical rise in price, and consists of two parallel trendlines that form a rectangular flag shape. The Flag can be horizontal (as though the wind is blowing it), although it often has a slight downtrend.

The vertical uptrend, that precedes a Flag, may occur because of buyers' reactions to a favorable company earnings announcement, or a new product launch. The sharp price increase is sometimes referred to as the "flagpole" or "mast".

The rectangular flag shape is the product of what technical analysts refer to as consolidation. Consolidation occurs when the price seems to bounce between an upper and lower price limit. This might occur, for example, in the days following a positive product announcement, when the excitement is starting to subside, and fewer buyers are willing to pay the high price that was commanded just a few days before. But, at the same time, sellers are unwilling to sell below a lower support limit.

A bullish signal occurs when the price rebounds beyond the upper trendline of the Flag formation, and continues the original upward price movement. This is considered a pattern confirmation.

When speaking about Flags, technical analysts may use jargon and refer to the flag as "flying at half-mast". Visually, this reference is nothing like a flag at half-mast, such as on a day of national mourning. Instead, this term refers to the location of the flag - at the mid-point of what would otherwise be a continuous uptrend.

top

Important Characteristics

Following are important characteristics for this pattern.

Trendlines

Flags are very similar to Pennants. However, with a Flag, the price trendlines tend to run parallel, whereas with a Pennant, the price trendlines tend to converge.

Volume

As the Flag develops, the volume tends to decrease. Following a positive product announcement, the price may have reached an unexpected high, and fewer buyers will be willing to buy. Interest in the stock may resume, however, as prices drop, and sellers begin to lower their price. The increased activity explains why you will often notice a sharp spike in volume at the end of a Flag.

Duration of the Pattern

Martin Pring notes in his book, Technical Analysis Explained that "Flags can form in a period as short as 5 days or as longs as 3 to 5 weeks." John J. Murphy identifies that Flags "often last no longer than one or two weeks."

top

Trading Considerations

Possibility of Price Reversal

In some rare cases, the price will break against the original price movement, and create a reversal trend. The pattern reversal may be signaled during the Flag formation by a sharp increase in volume, as opposed to the more typical decrease.

Duration of the Pattern

The duration of the pattern depends on the extent of the price fluctuations (consolidation). The greater the fluctuations, the longer a pattern will take to develop.

Target Price

It is commonly held that the length of the flagpole indicates the potential price increase. When the Flag completes, the price typically jumps to replicate the height of the original flagpole, while continuing in the direction of the inbound trend.

top

Criteria that Support

Volume

Volume should diminish noticeably as the pattern forms.

A strong volume spike on the day of the pattern confirmation is a strong indicator in support of the potential for this pattern. The volume spike should be significantly above the average of the volume for the duration of the pattern. In addition, the volume over the course of the pattern should be declining on average.

top

Criteria that Refute

Duration of the Pattern

According to Martin Pring, a pattern that exceeds "4 weeks to develop should ... be treated with caution". After 4 weeks, interest in the stock is likely to decrease to point that it is unlikely to continue in a strong uptrend.

No Volume Spike on Breakout

The lack of a volume spike on the day of the pattern confirmation is an indication that this pattern may not be reliable. In addition, if the volume has remained constant, or was increasing, over the duration of the pattern, then this pattern should be considered less reliable and may actually reverse.

Long Inbound Trend

Shabacker writes that, "When a mast is long ... and it's Flag relatively small, we should naturally expect the movement to be pretty well exhausted when its indicated objective is reached." He suggests that when you observe this formation, and a price continuation occurs, it is best to use the flagpole as a "yard-stick" to indicate the level at which to "take profits, step aside, and watch for further chart developments."

top

Underlying Behavior

This pattern is effectively a pause in an uptrend. The price has gotten ahead of itself with a steep rise; therefore market activity takes a break before continuing the uptrend. This pause is reflected in the decreasing trading volume. Similarly, a spike in volume marks the resumption of the uptrend.

Keep your mind in the future, in the now.
Reply With Quote
 
  #5 (permalink)
Market Wizard
Las Vegas, NV
 
Futures Experience: Advanced
Platform: Abacus, Slide Rule, HP-65, Metastock, TOS, NT
Favorite Futures: Futures
 
aligator's Avatar
 
Posts: 3,424 since Aug 2010
Thanks: 1,053 given, 5,822 received
Forum Reputation: Legendary


cory View Post
flag from jan arps

@cory,

Hi. I think the recent TASC Intraday Flag strategy can be converted into an indicator to actually draw the Flags. The conditions (pole and flag sizes and locations) are already defined and included in the strategy. Might worth a try.

Cheers!

Reply With Quote
 
  #6 (permalink)
Elite Member
Dover, Fl
 
Futures Experience: Intermediate
Platform: Ninjatrader
Favorite Futures: CL, NQ, YM, ES, GC
 
dnkhoward2's Avatar
 
Posts: 151 since Mar 2013
Thanks: 838 given, 156 received


aligator View Post
@cory,

Hi. I think the recent TASC Intraday Flag strategy can be converted into an indicator to actually draw the Flags. The conditions (pole and flag sizes and locations) are already defined and included in the strategy. Might worth a try.

Cheers!

Hi guys,

Just wanted to bump aligator's comment to see if anyone has turned this flag and pennant strat into an indicator.

Thanks

Attached Files
Register to download File Type: zip December2014SC.zip (11.2 KB, 50 views)
Reply With Quote
The following user says Thank You to dnkhoward2 for this post:
 
  #7 (permalink)
Elite Member
New York, NY
 
Futures Experience: Intermediate
Platform: Ninja Trade, Meta Trader
Broker/Data: PFG
 
Posts: 52 since May 2010
Thanks: 3 given, 14 received

Flag Pennant

I would love to see that too. I loaded the strategy and don't see anything plotting

Reply With Quote

Reply



futures io > > > > Flag/Pennant Patterns

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Daily Charts, Bar Patterns cclsys Traders Hideout 219 December 16th, 2014 10:36 AM
Here are the Best Price Action Patterns aligator Emini Index Futures Trading 10 October 24th, 2014 11:39 PM
Patterns in Tick Bar Charts Eiji Emini Index Futures Trading 3 February 13th, 2012 11:06 PM
Patterns workshop Eric j Elite Trading Journals 9 August 23rd, 2011 08:26 PM
Developing patterns on the ES trendisyourfriend Emini Index Futures Trading 9 April 20th, 2011 01:09 PM


All times are GMT -4. The time now is 07:11 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.14 seconds with 34 queries on phoenix via your IP 54.226.227.175