Bearish flag
A bearish flag is when a price is on a down trend then the price gets in a short term uptrend (pull back) in between trend lines (support and resistance). The price usual breaks out the range on the downside.
We look to enter on the break of the flag. Placing the stop over the highest point of the flag (or eyeball) and project the height of the flag from the resistance trend-line into the direction of the trend for the target.
Daily Chart analysis
Trade plan
I am waiting for the break to the downside on FSR share price. If the price breaks and close below the support trend line I will get my trigger. And if if trades low than the low of the break candle I am looking to be short.
Trigger
If/when the price breaks and closes below the support trend line I will place a sell stop order below the low of the break candle.
Confirmation
If the price trades below the trigger candle is a confirmation. When the trade is triggered I will place a sell stop order below the low of the trigger candle
My stop loss around the R42 levels or 2x ATR whichever is more logical at trigger
Perfect trade
[] Did I get the trigger (price breaking the trend line)
[] Did I get confirmation (price trading lower than low of the break candle)
[] Did I enter as per plan (Sell stop order)
[] Did I set my stop loss
[] Did I set my position size
[] Did I monitor the trade well
[] Did I exit as per the plan (Target or Stop)