This is the first part of the video series where I will explain how a high tight flag setup should look like. This will help you shortlist your focus stocks from the stocks that your scanner throws out.
A high tight flag setup should have the following characteristics. Here I am using daily timeframe: - The pole is steep. Means high percentage move in a few days. - Pole consists of big and high volume candles which close at top of the range - The flag (pullback) should be shallow - retracement less than 50%, preferably less than 30% - The pullback length should be less than 10 candles. More than 10 indicates lack of buying urgency from institutions, hence dying momentum - From left to right the flag should get tight (small range candles) and volume should start drying indicating lack of sellers
We go through these three examples to explain the point above: - IRCTC - CHOLAFIN ABCAPITAL
Thanks for sharing valuable info.. Really appriciate your clear and simple explanation
Kapil-Mittal
⋅
Your breakdown of the setup's components, such as the steep pole with significant percentage moves, big and high volume candles closing at the top of the range, and a shallow retracement, provides valuable insights. Additionally, highlighting the importance of a pullback length of fewer than 10 candles and the gradual tightening of the flag with