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Chart of the Day: 1/29/12

[dc]T[/dc]he bull flag is a simple, classic pattern that is a fundamental expression of the ebb and flow of buying pressure in an uptrend. In this case, we entered a position in Jazz Pharmaceuticals pcl (Nasdaq: JAZZ) intraday, but the position could also be initiated on the close or on the next day as close to the previous close as possible. (Note also the “hook up” on the MACD fast line which, in this context, is further support for a new long position here.) Always consider the bigger picture concept when executing any technical trade, but it’s hard to beat this pattern for a defining a precise entry spot.

Bull flag in JAZZ

AdamHGrimes

Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.
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