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Knowledgebase : FlagTrader
For stocks, if your broker offers a 'demo' or paper trade account you can check out their order procedures and terminology there at no risk. They should also have an FAQ, and should be happy to guide you by email or phone. It is very important that you ...
Shorting (selling something you don't own) is the process by which we can make money from a stock price going down. Normally if we expect a stock to rise we buy it and then sell it at a profit later once it has risen. But if we think the stock price ...
NO. We do not trade ascending or descending wedges because we have no clear entry point, and cannot manage the trade.
The only way you can lose money with these methods (if applied correctly) is on a false breakout. In other words if you get triggered into a trade and then it retraces and stops you out. This scenario is highly unlikely if: The flag pattern you chos...
Trading success does not depend on quantity and you should NEVER aim to make "x" amount of trades per day. Part of successful trading is knowing when NOT to trade. We only select the best opportunities, sometimes there are lots in a single day and som...
It may hep to to think, as a rule, that if a candlestick body is hollow it is 'light' in weight and therefore rising upward (The Close > The Open). Conversely, if it is 'filled' it is 'heavy' in weight and therefore falling downward (The Close < The Open)...
The flags (consolidation patterns) we like are generally 3-4 bars (days) long. Sometimes they can go for a bit longer but that's a good ballpark. We're looking for easily recognisable, neat, and compact flags.
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It is absolutely essential that you fully understand the terminology of your broker (which may vary from ours), and their own methods of opening/closing trades, managing profits and adjusting stop-loss orders. Trading in a 'Demo' account is not the same...
Yes, always. If you are an invitee, or a registered attendee, you will receive the link to the recording by email between 12 - 24 hours after the event. If you do not, please email support@ovitraders.com and we will send the link over to you.
The OVI is ONLY available on Guy's websites.
We recommend GOOGLE CHROME or FIREFOX Web Browsers on all operating systems and devices for the best experience. If you are already using Chrome or Firefox please try the following steps in the order given and stop when the issue is resolved. Please ens...
Sizer is a freeware application developed by a third party for MS Windows operating systems. It is not applicable to MAC or any other operating systems. If you downloaded V3.34 there is a newer, more customisable version here: http://www.brianapps.net/...
We can well understand your frustration! There are a couple of things to try here. The Webinars are hosted by GoToWebinar (GTW) and we try to open up the 'room' up to an hour prior to the advertised start. If you are on a new computer or device, you wi...
For Stocks and Options: Nasdaq maintain a list of preferred on-line brokers on the following link: http://www.nasdaq.com/investing/online-brokers/ [http://www.nasdaq.com/investing/online-brokers/] Scroll down that page for a more exhaustive list. We are...
The key is finding the neatest flags, supported by the OVI. All the other indicators such as open interest, trending months and volume patterns are nice to have as additional filters if the initial results list is overwhelming. Therefore, it is recom...
We try to avoid being caught out by past support and resistance areas. Also we look for some clearance beyond the flag itself. It can vary according to factors such as other S&R, and whether we're near a round, decade, or century number, which we also...
You will have more chance of better 'fills' with highly liquid tickers, avoid ones with low volume or which are 'penny' stocks.
This is something that can happen. Ideally when the stock breaks out it keeps going, takes out our first profit target and then some more on top. When the markets are breaking out big time either way, then that's how we make our best windfall profits....
Trading flags is a technical trading method. We don't want a major news event to destabilise our method, so the safest thing to do is to sit tight while big announcements, such as Earnings reports and Federal Reserve statements are being made. So for...
Really the number of trades you have open is a matter of personal comfort. For me, 5 at a time is ok, rarely more. For one of my most successful students, when the markets are ripe for picking he can go to 20 at a time, and he's quadrupled his account i...
If it stops looking like flag, then that's the time to move on; or if there are other better opportunities that deserve your attention. We don't tend to look beyond a couple of weeks of consolidation, unless there is a channel or basing action, as there...
Broadly speaking, there are two types of trading account you may be interested in. Regulation T Margin, or Cash. Reg T Margin gives you the facility to partially cover a trade on money 'borrowed' from the Broker; Cash means that you need sufficient fun...
All of our systems are web based and are accessed through a web browser, however we recommend Google Chrome or Firefox on all operating systems and devices.
There is a basic options tutorial freely available if you sign up at www.optioneasy.com [http://www.optioneasy.com] where you will also see the products, methods and modules that we use. If you are a member of Flag Trader or OVI Private Club there are ba...
Yes, using rising and falling price chart patterns, with OVI support.
As all materials are available online, which you have access to immediately, the trial period starts on the day of registration. If you do not receive your log-in details in a 'Welcome' email very soon after signing up please email support@ovitraders.co...
Flag-Trader, OptionEasy and OVI Private Club are courses and tools for finding Guy's favoured opportunities in the markets. They are not an advisory service and as such there is no track record per se as any results would be subjective - not all traders...
The method to close half the position when first profit target is reached will depend on your broker's platform. Your broker will be best placed to advise on this. If you are spreadbetting with IG Index, it is good practice to place two trades, each for ...
Once you have taken your first profit target, you'll need to manage the trade using Guy's Dynamic Trailing Stop on the stock price (underlying stock price if trading options). All these are explained in the training videos. Therefore, you could be in ...
You can certainly trade flags that occur in ETFs, and also by way of options, CFDs, and if in the UK, spreadbetting. The patterns occur in the underlying stocks (and an ETF is basically a stock) and so the instrument by which you choose to trade it is y...
This is a common fallacy. Just because a trade seems to be imbalanced as to risk/reward, that's not actually the important thing - it just sounds good in marketing material and in seminars. But what does it actually mean? Nothing! The key is what ha...
We typically like the flag to be a consolidation where the bars are tighter than what has gone on before.
You have to manage your trade, profits, and losses, according to the trade plan. This means that you revisit every open position or order on a daily basis. First profit can often be automated by means of a limit order, it depends on your broker platfo...
If you are based in the UK and spreadbetting, we normally recommend that you place your trades during market hours to avoid gapping. If you are based outside the UK and/or trading stocks/options, you can place the trades outside market hours if the brok...
Yes, once you get the hang of things that is about average. Some days it will be much less and some days a little more, depending on how many flags the software finds for you to check that day.
Our online tools to help find the opportunities focus on US Stocks and Options. If your broker trades these stocks/options, or you obtain a suitable on-line brokerage account, then these programs are very suitable.
Trading flag patterns is applicable to any type of chart and all securities, in other words: stocks, commodities, indices, forex, futures, and even bonds. As with any other trading signal, you must always use a properly defined trading plan. The OVI a...
Anticipating is a double-edged sword! You can anticipate support or resistance as the stock approaches the zone. If you're already in a trade we can use them as a profit target or stop loss. If you're in a bullish trade then you'd have your (first) pr...
What we mean by that is a breakout that is preceded by a flag pattern or a clear support (or resistance) area. For any trade we need to know exactly where we're going to enter as that will set up the entire trading plan for us. If we mess up the entry...
A flag is a consolidation pattern during a dominant trend and entails the price rebounding off 2 short term parallel trendlines. There is very rarely a 'perfect' flag shape, but what we are looking for is price consolidation. The flags can be in the s...
Generally there will be many more pretty flags in the Trade Finder selections, with good supporting OVI. But there are some wise words to bear in mind: "When in doubt, stay out" "If you don't know your risk, don't take it" "Lost opportunities ...
As long as you need it during your subscription period, contact support@ovitraders.com Many clients have been with Guy for years. Software improvements/upgrades are also included when deployed.
Given the choice between a thrusting bar and a gap, you would prefer thrusting bars since they represent price action during trading hours, and reflect that the stock price actually did travel through the prices within the bar. Gaps also sometimes retur...
Yes, if you want to bag that first profit (if you're a bit nervous) then better to take it than having a restless night. Different traders have different tolerances for perceived risk and as you say, it is a swings and roundabouts game. However, if yo...
Support and resistance are important as it gives an indication of potentially how profitable the trade may be. If you have these close to your entry price or first profit targets, there is a risk that the stock will not be able to break pass the support...
Our TradeFinder software typically finds on average over 200 stocks daily. Our best traders then combine discretion and other filters with the software results hence it is unlikely all our subscribers will be trading the same stocks on a daily basis. ...
Open Interest is now integrated into the OVI, but generally speaking, a disproportionately larger amount of calls than puts is a bullish sign and a disproportionately large amount of puts in relation to calls is a bearish sign. The OVI readings act to r...
You want to stick with neat looking flags or patterns where the consolidation or range of the pattern isn't too deep - otherwise there is too much distance (risk) between your entry and optimal stop.
Your entry point should always be the high (for Long) or Low (for Short) of the consolidation or other pattern. (Unless entering without a breakout) If the stock has gapped by some way, then you do not have a trade. If the stock has only gapped beyond...
After searching with Trade Finder, click the 'Export List to Telechart' button. Save the CSV file on your computer. Import the CVS into a compatible programme e.g., TC2000 (Telechart). See the Help or FAQ of your own charting package for further ass...
The more patient, disciplined and fussy you are about the trades you choose the higher your success rate will be. Some people can start with six winners in a row, for others it will take longer to master. This does not simply mean setting the most str...
We advise members against trading a stock in the few days (a week) before earnings unless you are trading Guys specific pre-earnings or volatility strategies. If you are in an existing profitable position approaching earnings you can choose to let it ru...
We advise members against trading a stock in the few days (a week) before earnings unless you are trading Guys specific pre-earnings or volatility strategies. If you are in an existing profitable position approaching earnings you can choose to let it ru...
Trading is a very psychological game, and this is the approach that we have found that is the most consistent and reliable way of walking away with profits. If you take half your position off, for a conservative early profit (P1) the rest is bonus, whic...
Flags are found by complex algorithm and so whilst you may spot a flag that is visually appealing it may not have made the cut as some part of the formula was not satisfied.
The OVI really needs good liquidity in the options data, and UK options are thinly traded and far fewer in number. The other factor is that whilst US options are traded in 'lots' of 100, in the UK it is 1,000 so cost prohibitive for retail traders.
The below example will illustrate the difference between practical and theoretical risk. Say you buy 10 stocks at $15.00. THEORETICALLY, the stock price can go to zero tomorrow and you can lose all the money you have invested in this stock, which is $15...
The main earnings seasons are mid Jan-Feb, mid Apr-May, mid Jul-Aug, and mid Oct-Nov, although there will be some companies announcing earnings outside of these times.
It's all about support/resistance and breakouts TOGETHER WITH the OVI, for guided discretionary trading you don't read the OVI on its own, it is not a daily indicator. Look for persistence in its behaviour.
The OVI does not support Forex per se, however it is applicable to Currency ETFs (Exchange Traded Funds).
Guy holds a 1 day Stock Seminar live in London, UK every November, and a 2 day Options Seminar live in April, usually in Miami, Florida, USA. These are also broadcast for remote viewing live on the internet, and on-line DVD sets of the events are profes...
The OVI is derived from, amongst other things, options volume, open interest and implied volatility. The OI component can only be updated at end-of-day, so unfortunately the OVI cannot be intra-day.
First work through the on-line training and take notes as you go. Many subscribers go through the education several times. Go at your own pace, its better to understand it than to finish quickly. Once you have a basic feel for it, an hour a day is r...
Because the OVI is reliant on options market data, which is not available until after the markets are closed at about 7pm Eastern US, midnight UK, literally billions of lines of code are run to refresh the OVI data and prepare the charts and OVI for the f...