4. Bull Flag Pullback Entry

Entry Logic

Trigger: Price pulls back to the upper trendline of a broken bull flag after a breakout, forming a bullish reversal candle on the 2-minute chart. Confirmation: Volume decreases on the pullback, then increases on the reversal. Timeframe: 2-minute chart. Location context: Price tests the prior resistance as new support. Market condition: Strong bullish trend.

Exit Logic

Profit targets: Measure flagpole length, project from breakout. Scaling out: Scale out 60% at first target, 40% at second. Trailing stop: 0.6 ATR below the 2-minute candle low. Signal failure: Price closes below the retested trendline. Time expiration: Close trade after 1 hour if no target hit. Momentum loss: Close if price fails to make a new high for 15 minutes.

Stop Loss Structure

Hard stop: 0.3% below the low of the reversal candle. Soft stop: Price closes two consecutive 2-minute candles below the retested trendline. Max dollar loss: $150 per trade. Max percent loss: 0.35% of account. Structural stop: Below the bottom of the flag channel.

Risk Management Framework

Risk per trade: 0.7% of account. Daily limit: 2% maximum drawdown. Weekly limit: 3.5% maximum drawdown. Max drawdown: 7% before review. R:R requirement: Minimum 3:1.

Position Sizing Model

Sizing approach: Fixed dollar amount. Volatility adjustment: Reduce size by 20% for instruments with ATR > 1.8%. Conviction sizing: Add 10% size for A+ setups with strong momentum. Scaling in/out: Enter 100% on confirmed pullback reversal.

Trade Filtering

Market conditions: Strong, clear bullish trend. Setups: Clear bull flag, clean breakout, precise retest. Instruments: High-beta stocks, trending ETFs. Time restrictions: Avoid market open volatility. Chop/news avoidance: Do not trade during major economic reports.

Context Framework

Trend direction: Aligned with 5-minute, 15-minute, and 30-minute charts. VWAP relationship: Price must be above VWAP and VWAP slope up. MA relationship: Price holds above 9 EMA and 20 EMA. Range location: Pullback to the upper half of the daily range. Higher TF: Daily chart shows strong uptrend.

Trade Management Rules

Breakeven: Move stop to breakeven at 1R profit. Scale out: Use two predefined targets. Add size: Do not add size. Fast vs slow moves: Tighten stop aggressively on fast moves.

Time Rules

Optimal window: 10:00 AM - 12:30 PM EST. Times to avoid: Pre-market, after-hours, market close. Session notes: Focus on morning momentum.

Setup Classification

A+ criteria: High volume breakout, low volume pullback, clear bullish reversal candle on retest. A criteria: Good volume, clean pullback, strong reversal. B criteria: Moderate volume, slightly messy pullback. C criteria: Low volume, weak reversal.

Market Selection Criteria

Instruments: TSLA, NVDA, AMD, SMCI. Volume: Average daily volume > 25 million shares. Volatility: ATR between 1.5% and 3% of price.

Statistical Edge Metrics

Win rate: 60%. Avg win: 2.8R. Avg loss: 0.6R. Profit factor: 2.0. Expectancy: $1.70 per dollar risked.

Failure Conditions

Strategy fails if: Pullback turns into a full reversal. Retest fails to hold support. Market shifts from trend to range.

Psychological Rules

Mental discipline: Be patient for the retest. Avoid FOMO. Trust the support level.

Advanced Components

Regime detection: Use ADX to confirm strong trend before pullback. Filters: Use Fibonacci retracement levels for pullback target. Correlation: Monitor sector strength. MTF alignment: Confirm retest on 1-minute and 2-minute charts.

Location

Strongest: In a strong, trending market with clear support. Weakest: In a choppy, indecisive market.