This setup is a bear flag.
Criteria:
Trade based on 15 min. chart
1. Stocks usually gaps down below the PDL. In some case, trades can be taken when price is within previous day range.
2. First bar is a WRB which closes very weak with almost no lower tail. No or very small upper tail.
3. 3rd candle starts the retracement to the 5 EMA on low volume. Retracement candles are within the WRB.
4. Retracement candles are mostly green which closes strong. Max. retracement allowed - 50%
5. All EMA's should be in bearish orientation. EMA's are sloping.
6. Entry on reversal candle/ first red candle that takes out previous candle's low. Trigger candle has to be near 5 EMA.
7. Take partial at swing low, 38% FE with final target - 100% FE.
8. Overall weak market favorable. A trend down day is most favorable.
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