I Bought High Tight Flag QURE Today

High tight flags aren’t something I have traded much, but they’re very powerful, so I’m looking to learn by doing, with small position size of course.

If you’re on my email list or follow me on X you know QURE was one of the two stocks at the top of my watch list this week.

Unfortunately I fumbled the entry here a bit but I’ll expand on that in a minute. First let’s cover why I thought this was a good buy and how I planned to trade it.

Pretty basic there for a hight tight flag pattern. Up 150% on extraordinarily high volume, coupled with a decently structured 20% pullback.

I eyeballed two entry points, as shown on the chart above, and planned to set Monday’s low of the day as my stop upon entry. A decently tight entry if everything went according to plan.

Well it didn’t. It did open inside so I set my stop purchase orders. And then the price pulled back below Friday’s close. At this point my LOD stop was wider than anticipated so I reduced the buys from 1/4 size positions to 1/8.

My stop on the first buy is now 5.56% instead of something like the 2% I initially planned. But position size is smaller so roughly the same number of dollars are at risk.

Maybe I should have just thrown in the towel. IDK. But at the same time I am managing the risk so…

The Next Day - A Sad Little Update

The good news is that this morning, Tuesday January 7th, the stock pushed out and cleared all the wicks from the previous few day. It got through my second purchase price from the chart above so I doubled up from 1/8 to 1/4.

At the same time I moved my stop up to todays low, decreasing my risk from 5.56% to 2.77%. Roughly the same number of dollars are still at risk here.

By 3:45pm it was at new highs for the day and things were looking good for my little HTF, but by 4pm I was all stopped out.

I fear I may still be chasing action a bit so no more trades or adds to current positions for me this week. I’ll manage my current positions by reducing risk if I can, but I feel the need to regroup and let this market correction play out more before trying again.

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