Guide to Day Trading Strategies

R O S S C A M E R O N
74
Chart of a Bear Flag. This 
Á
 ag was consolidating near the 9 EMA.

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H O W T O D A Y T R A D E
75
Chart of 
À
 rst and second Bear Flags. Both show consolidation near the 9 EMA.
Bear Flags
A bear 
Á
ag is the inverse of a bull 
Á
ag. We look for a strong sell off, a slight bounce on light volume, 
and then the 
À
rst candle that makes a new low to start the next round of selling. I trade 
Á
at bottom 
breakdowns, but I don’t usually trade bear 
Á
ags unless they are extremely obvious. When I trade 
bear 
Á
ags, they are typically 
Á
ags forming on the one minute chart due to a sudden drop in prices. 
When news breaks and a stock quickly drops 5%, they often bounce up momentarily, before selling 
off again. The best bear 
Á
ags are ones that occur on stocks surging with volume.
A stock that has been generally weak all day, and is forming a longer bear 
Á
ag on the 
À
ve minute 
chart, can be a good candidate for a day long fade. These are stocks that may not have news, 
but are simply grinding lower on volume. If a stock is forming a bear 
Á
ag on lighter volume, it 

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R O S S C A M E R O N
76
is important to remember that the strength or weakness of the overall market can in
Á
uence the 
price. Since I am predominantly long biased, if I decide to short stocks, I prefer taking setups 
that are extremely obvious.
Chart of stock riding the 9 EMA all day long. Each moving average pullback 
represented a buying opportunity as a small