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Momentum Flag Setup

A Power Play's shape without a Power Play's engine. A Stage 2 leader advances 20–100%, then builds a shallow, tight base while volume dries up and price works back toward the pivot. These are legitimate continuation setups and they are far more common than a true Power Play — which is exactly why they need a name of their own. Until 2026-07-29 the scanner published them as Power Plays, which claimed more than the chart could support.

Scan for Momentum Flag Study with Classical TA

Historical replay

Target before stop: 18% reached +20% before −8% within 40 sessions. Sample: n=62 eligible setups. Average: -0.3% per setup (-0.03R).

Source-bar window: 2024-11-01–2026-10-26. Entry requires an executable breakout fill after the signal; unresolved setups receive the full replay window. Historical and illustrative, not predictive. No brokerage slippage, fees, taxes, or individualized sizing.

How this is measured →

Setup Criteria

› Prior advance of 20–100%, measured over at most 8 weeks
› Base correction of 25% or less from the peak
› 1–3 contractions; tightening waived when the base is under 10% deep
› Volume contracts through the base
› Price within 5% of the base pivot
› Confirmed Stage 2 uptrend, weekly trend confirmation, RS leadership

Entry

Breakout above the base pivot on volume 40%+ above average.

Stop Loss

Below the base low. Size it as a continuation trade, not a Power Play.

Worked Example

PSX — flagged as a Momentum Flag on Oct 27, 2026 (score 94). 26 weekly bars with the 10-week SMA.

Entry / stop / target annotations are drawn for Pro members. Unlock →

Historical detection shown for education — not a current recommendation.

What Happened Next

Forward returns after the scanner first flagged a Momentum Flag (score ≥ 70, gatekeeper passed, one signal per base) — computed from stored daily bars, no lookahead. 28 historical signals.

After	Median Return	% Positive	Sample
5 sessions	+2.5%	71.4%	28
10 sessions	+1.3%	53.3%	15
20 sessions	-5.0%	33.3%	12
40 sessions	-9.6%	33.3%	9

Median best move inside 40 sessions: +6.1% · median worst drawdown: -3.2%. Past scanner behavior does not guarantee future outcomes. Not investment advice.