X set up as a target trade to support on the daily as commodities cratered off the open. From the 15 min. chart below we see a weak opening range followed by WRB which tags support from yesterday's swing low. I was expecting a series of NRBs to form at the base, but price breached the base and continued lower. IMO, every flag pole, needs a flag (narrow range consolidation) before the pattern can continue in earnest. Finally, X printed a hammer reversal bar which was the beginning of the flag. Price retested the base and then carved out a NRIB NR7.

I ignored S2 because as far as could tell, it didn't line up with any congestion or support area. I covered as price approached the target and round $ number $160.00.

My second X trade was a trendline breach on the 1 minute time frame. After retracing back up towards the declining 20 EMA on 15 min., X printed a shooting star. On the 1 min. chart price swooned into the trendline, consolidated briefly, before breaching and ascending the second leg down.

Failed flag pole and flag pattern on DRYS. S2 is significant here and dates back to the second week of June.


COG was an inverted C&H pattern. The key take away here is don't enter the B&B after a wide move into the base. If price doesn't consolidate prior to breaking out, it will after. If it breaks wide, it will most likely come back and retest the base. Either way, patience pays off with a better risk:reward.