Scan 5,000+ stocks daily for TraderStewie-style Power Earnings Gap + Flag setups. Two patterns combined for higher-probability entries. Each setup graded A+ to B.
Run this scan →The Power Earnings Gap plus Flag setup combines fundamental catalyst analysis with classical chart pattern recognition to create one of the highest-probability continuation setups in momentum trading. This dual-confirmation approach was popularized by TraderStewie, who recognized that earnings gaps followed by flag consolidations produce significantly better outcomes than either signal alone.
The logic is compelling. The earnings gap provides the fundamental catalyst — a genuine reassessment of the company's value by the market. The flag consolidation that follows provides the technical structure — a controlled pullback on declining volume that shakes out weak hands while institutional buyers maintain or add to their positions. When both signals align, you have fundamental demand meeting technical supply exhaustion.
The ideal PEG + Flag setup shows a gap-up of at least 5% on heavy volume, followed by 3 to 10 days of tight, declining-volume consolidation that retraces no more than 30-40% of the gap move. The breakout from this flag — when it comes on expanding volume — carries the conviction of both the fundamental catalyst and the technical setup, making it one of the most reliable patterns for momentum traders.
Popularized by TraderStewie (also known as SteadyTrade) through his social media and trading education platforms. The PEG + Flag concept combines Dan Zanger's earnings gap methodology with classical flag pattern analysis from Edwards and Magee. TraderStewie demonstrated that the combination of a fundamental catalyst (earnings gap) with a technical consolidation pattern (flag) produced higher win rates than either signal alone.
Our scanner evaluates the following criteria when detecting Power Earnings Gap + Flag setups across 5,000+ stocks daily.
For PEG + Flag setups, an A+ grade means a strong earnings gap followed by a textbook flag with volume contraction below 50% of the gap day. The flag should retrace less than 30% of the gap move. This is not a prediction of future price movement — it is a way to prioritize which charts deserve your attention first.
Buy on breakout above the flag's high following the earnings gap, with volume expansion. The flag should have formed over 3-10 days with declining volume before the breakout triggers.
Place stop below the flag's low. A secondary stop level is the gap-day low — if the stock fills the entire gap, the fundamental catalyst has been rejected by the market.
Measure the gap-day range and project it above the flag breakout as the minimum target. Stocks with genuine PEG + Flag setups frequently exceed the measured move target.
This is educational content only. Not financial advice. Always do your own research and manage risk appropriately.