The trading gods have spoken

I wanted to point out a trade that appeared today where everything pretty much lined up perfectly. It isn't often that the trading gods offer such nice setups.

This morning DIA formed a bear flag with a doji candle at a 50% Fibonacci retracement as the moving averages crossed over. This all occurred after a new price and momentum low for the day.

Whew. When the market gives you an opportunity like that you've got to grit your teeth, put on a larger than normal position and (hopefully) watch the money roll in. With this trade, you wouldn't have even endured any sort of heat as the trade pretty much did everything it was expected to do.

If you missed this trade, or hesitated to take it because it wasn't "perfect", it pays to look over an example to help prevent missing future trades. These patterns appear on all stocks and burning them into your mind will help you be ready the next time one occurs.

I have a notebook with patterns that I traded (or missed) and I often refer to it during the day to keep me from taking trades that aren't good and to force me to take trades that are.