Greetings from New York where I’m having a number of meetings but sadly not enough leisure time for my liking in such a wonderful city!
With the markets creeping back up to their highs, there are several decent OVI and flag opportunities out there (plus some real gems!) but in today’s review I must emphasize good trade management practices.
The OVI gives us a proven advantage for movements to our first profit target and beyond. It’s crucial that you maintain your “shape” in my trading plan because there will be times where a stock retraces sharply against us.
This has been a market where many P1s have not turned into P2s, so it’s crucial that the P1 that you set is conservative.
Securing that first profit target is a magical part of our trading plan, and you must not be despondent if that’s all you get from a trade.
Today’s review includes setups that we’ve been monitoring recently, plus my favourite FlagTrader filters. You’ll notice many stocks that have recently risen through their 200 day moving averages and forming post-earnings flags with persistently positive OVIs.
You can literally create an entire trading business from that setup!