Flag chart patterns are one of the simplest chart patterns in technical analysis and are frequently overlooked by traders as their education proceeds and they move on to more complex strategies.
Yet the word is that those chart patterns, both bull flag and bear flag are the basis of a new product being developed by Guy Cohen, author of the successful option trading strategy that he refers to as Illuminati-Trader.
As Guy has explained on his blog the trading conditions for his favourite options straddle strategy have not been good over recent months as the markets are going through dramatic changes. Yet at the same time some of his customers have been reporting dramatic success using only a single element of Illuminati-Trader.
Guy's Tradefinder online software to which his customers gain access is fine tuned to locate suitable breakout candidates including bull and bear flag chart patterns. Under his guidance and using just this element his customers have been reporting some great success. The result is that he has been developing a new product for release in the near future that he tells me is going to be called, wait for it; 'Flag Trader' surprise, surprise.
Indications are for a release in the next few weeks so look out for more information on Flag Trader. We will be bringing you our own views on the subject just as soon as we have worked our way through the preview copy we are currently taking to pieces.