Target Trade Flag Pole- United States Steel Corporation

Tag : steel pole
X set up as a target trade to support on the daily as commoditiescratered off the open. From the 15 min. chart below we see a weakopening range followed by WRB which tags support from yesterday'sswing low. I was expecting a series of NRBs to form at the base,but price breached the base and continued lower. IMO, every flagpole, needs a flag (narrow range consolidation) before the patterncan continue in earnest. Finally, X printed a hammer reversal barwhich was the beginning of the flag. Price retested the base andthen carved out a NRIB NR7.

I ignored S2 because as far as could tell, it didn't line up withany congestion or support area. I covered as price approached thetarget and round $ number $160.00.

My second X trade was a trendline breach on the 1 minute timeframe. After retracing back up towards the declining 20 EMA on 15min., X printed a shooting star. On the 1 min. chart price swoonedinto the trendline, consolidated briefly, before breaching andascending the second leg down.

Failed flag pole and flag pattern on DRYS. S2 is significant hereand dates back to the second week of June.


COG was an inverted C&H pattern. The key take away here is don'tenter the B&B after a wide move into the base. If price doesn'tconsolidate prior to breaking out, it will after. If it breakswide, it will most likely come back and retest the base. Eitherway, patience pays off with a better risk:reward.