#10 August 18, 2011 TIGHT FLAG AFTER SHARP DOWNSWING

This is same trade on same day as chart in entry #9. When tight flag pattern formed after downswing (red lines) suggested strong chance of another downswing. Lightened partially on this formation, which was right thing to do. Lightening more would have been even better.

Lesson: Tight flags after near-vertical swings usually result in continuation of move.