If you look at URRE's chart, it rocketed higher on strong
volume, then continued to drift lower on extremely light
volume...forming a long flag like formation. For how long
should you allow the tail of the flag to drift down on low volume
before the pattern is considered broken??
In other words, when should one consider the pattern
to have run its course without exploding to the upside?? In
this situation, my gut was starting to say the flag was getting too
long and the stock would not burst upwards, but my disciplined
approach said simply leave the stop to do its work and don't
interfere by selling early.
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Thanks Matt, RP and Zach for your thoughts on placing a stop on URRE. One followup question....
Posted by RichieD on 16th of Nov 2011 at 10:43 am
If you look at URRE's chart, it rocketed higher on strong volume, then continued to drift lower on extremely light volume...forming a long flag like formation. For how long should you allow the tail of the flag to drift down on low volume before the pattern is considered broken??
In other words, when should one consider the pattern to have run its course without exploding to the upside?? In this situation, my gut was starting to say the flag was getting too long and the stock would not burst upwards, but my disciplined approach said simply leave the stop to do its work and don't interfere by selling early.