MDXH Forms a High-Tight Flag: A New Swing Trading Opportunity
ChartMill’s screen highlights a textbook continuation pattern in MDXH
A fresh swing trading opportunity has emerged in MDxHealth (NASDAQ: MDXH), which recently formed a classic high-tight flag pattern. This technical setup often signals strong continuation potential when accompanied by volume and fundamental support.
The High-Tight Flag Setup
MDXH has been in a strong uptrend, rallying sharply in recent weeks. After the initial surge, the stock began to consolidate in a tight sideways pattern just below recent highs. This type of high-tight flag formation is often interpreted as constructive, as it allows the stock to digest prior gains without giving up much ground.
The technical picture shows:
Price trading above all key moving averages (50-, 150-, and 200-day).
A well-defined flag zone near $3.50–$3.75.
Entry point at $3.83 with a stop set at $3.43, based on the ChartMill position sizing tool.
Fundamentals Add Support
MDXH’s recent quarterly results show positive revenue trends. Sales have grown consistently across the last five quarters, with year-over-year increases ranging from 20% to 34%. EPS remains negative but has shown signs of gradual improvement. For swing traders, this steady revenue growth provides a fundamental backdrop that aligns well with the bullish chart setup.
Risk Management
According to the ChartMill Position Sizing Tool, a trader with a $100,000 account risking 0.5% per trade would size this position as follows:
Number of shares: 1,225
Total investment: $4,701.75 (≈4.7% of account)
ATR (14): $0.20, with a stop distance of $0.40 (≈1.99 ATR)
This keeps risk controlled while allowing participation in a potential breakout.
See How I Found It
I’ve just created a video walkthrough showing exactly how I spotted this setup using ChartMill’s screening tools. If you’d like to see the step-by-step process and how the high-tight flag was identified, make sure to check it out in the video below.
Important Note
As always, keep in mind that not every setup works out. Losses are a normal and necessary part of swing trading. This article is intended solely to highlight the screening capabilities of ChartMill and should not be taken as financial advice or a recommendation to buy or sell MDXH. At the time of writing, the author has no position in MDXH.
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