Guide to Day Trading Strategies

R O S S C A M E R O N
70
Chart of Flat Bottom Breakdown.
Flat Bottom Breakdowns
The inverse to the 
Á
at top breakout is the 
Á
at bottom breakdown. When a stock is very weak and 
consolidating near the lows, just above a critical support level, we have the same opportunity 
as a 
Á
at top breakout. There is the potential for a quick pro
À
t with a low risk entry. As with any 
other setup, we want to do our due diligence and review the catalyst in play, search the daily 
chart for support/resistance areas, and make sure we can achieve at least a 2:1 pro
À
t loss ratio. 
We base this on the 
À
rst pro
À
t target and the distance from a logical stop

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H O W T O D A Y T R A D E
71
Chart of a nearly picture perfect Bull Flag. Notice the orderly 
pullback to the 9 EMA. This shows a clean 
À
 rst and second pull back 
opportunity. The green arrows indicate the proper entries.

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R O S S C A M E R O N
72
Chart of a Bull Flag. Notice the clean pullback to the 9 EMA. The entry 
here would have been $5.42, with a stop at the low of the pullback. 
Although the formation of the 
Á
 ag was not as clean, this bull 
Á
 ag 
breakout resulted in a volume spike as buyers rushed into the stock.
Bull Flags
Bull 
Á
ags are my second favorite chart pattern. A bull 
Á
ag is very similar to a 
Á
at top breakout, 
except with one very important difference. Unlike a 
Á
at top breakout, a bull 
Á
ag will experience a 
slight pullback off the 
À
rst strong move. I have found that bull 
Á
ags produce some of my largest 
winning trades out of all the setups I trade. The only reason I prefer 
Á
at top breakouts is, the 
Á
at top suggests stronger bullish sentiment, because the price has not had a pull back. A typical 
bull 
Á
ag will make a move of three to 
À
ve strong, long body green candles, and then have one 
to three smaller red candles as it pulls back. While bull 
Á
ags can be traded on any time frame, 

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