Flat On A Failure

AAA

DEFINITION of 'Flat On A Failure'

Closing out a position and taking profits when the security in question moves up to a target level but fails to break through it. This can be seen as a method of extracting what profit a trade has been able to produce so far because the trader believes that further movement past the target level is unlikely.

INVESTOPEDIA EXPLAINS 'Flat On A Failure'

For example, suppose that a trader is in a long position on a given currency pair and the exchange rate moves upward in her favor by a moderate amount, but fails to move past a key resistance level she was expecting to act as a catalyst for further movement. In this case, the trader would probably deem the trade flat on a failure and close the position, taking whatever profit has been earned.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Profit Taking

    The action of selling stock to cash in on a sharp rise. This ...
  3. Cross Currency

    A pair of currencies traded in forex that does not include the ...
  4. Forex - FX

    The market in which currencies are traded. The forex market is ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
Related Articles
  1. Forex Education

    The Fundamentals Of Forex Fundamentals

    Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators.
  2. Options & Futures

    A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  3. Forex

    What is a pip and what does it represent?

    A pip is a very small measure of change in a currency pair in the forex market. It can be measured in terms of the quote or in terms of the underlying currency. A pip is a standardized unit and ...
  4. Chart Advisor

    These 4 Stocks are Hitting Technical Headwinds

    These up trending stocks are showing signs of weakness, indicating it may be time to sell.
  5. Forex Strategies

    How do I implement a forex strategy when spotting a Three White Soldiers Pattern?

    Learn two variations, one aggressive, one more conservative, of a forex trading strategy that can be used with the three white soldiers candlestick pattern.
  6. Technical Indicators

    How do I implement a forex strategy when spotting a Three Black Crows Pattern?

    Learn a common forex trading strategy traders use to capitalize on the bearish market reversal signal given by the three black crows candlestick pattern.
  7. Technical Indicators

    How are Three White Soldiers patterns interpreted by analysts and traders?

    Understand the basics of the three white soldiers candlestick pattern and how this bullish reversal signal is interpreted by analysts and traders.
  8. Trading Strategies

    How effective is creating trade entries after spotting a Three White Soldiers pattern?

    Understand the basics of the three white soldiers pattern and what conditions are optimal for creating effective trade strategies based on this reversal pattern.
  9. Trading Strategies

    What are the best technical indicators to complement the Time Segmented Volume (TSV)?

    Understand the function of the Time Segmented Volume, or TSV, indicator, and learn good technical indicators to use in conjunction with it.
  10. Technical Indicators

    How do I build a profitable strategy when spotting a Three Black Crows pattern?

    Learn to identify the three black crows candlestick pattern and learn how stock market traders use the pattern to profit from a bearish market reversal.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center