There's nothing quite like a happy customer to make users feel good about a product.
One of Guy's customers has been trying out Flag-Trader and came back with the following:
Sent: 15 September 2008 21:06
To: Guy Cohen
Subject: Open interest! yeah baby!
Still going through the flag trader course but thought I'd let you know about my first foray into trading flags and open interest.
Found GAP on flagtrader (bear flag). Usual suspects seemed in place (trending, open interest, huge put disparity) so I set a contingent order for a couple of puts if it broke downwards.
This was my trade journal entry prior:
"Nice bear flag. No news except that there might be a clandestine takeover coming evidenced by increased volume (article from news section). General down trend. Coverage initiated recently so ppl will be watching the stock. OPEN INTEREST on the puts 1400, on the calls 25… TYPE OF ORDER(PUTS): Contingent upon GAP less than 12.60 – Good Until Cancelled Trigger type : last."
To be honest I'd almost forgotten about it until tonight when I casually checked my optionsxpress account and my balance had jumped up!
Stock is now at 8.84
Puts cost 3.2 each – now valued at 6 bucks so its 87.5% gain, and counting… in two or three days!
Going to take half off and then ride it down on a trend line and see how far I get.
Don't know if I got lucky, but by Jesus I have hope!
Pity i'm still virtual trading… anyway feels good.
So it looks like first impressions from users are pretty good.
The bear flag pattern is the opposite to the bull flag in that the configuration is the same but it is found in a downward trending stock. With the bear flag the shape of the flag and flagpole is inverted as though upside down.
The bear flag is a continuation chart pattern in which the price slightly retraces the preceding decline in the downward trend.
The sell point is when price breaches either the lower trend line of the flag area for an aggressive trade or the lowest price reached in the flag area for a more conservative approach, ideally with increasing volume indicating that the market sentiment is to continue downwards.
For a true flag the pattern has highs and lows which can be connected by small parallel trend lines