What is Flag pattern and how to trade with that?
Flag Pattern (Bullish)
* One of the most common patterns of price trend continuation is the FLAG pattern. How to identify this pattern? How to use it in trading most effectively?I will cover it all through this post.
* The Flag pattern is a type of price pattern in bullish trends. This pattern consists of a strong increase (called a flagpole), followed by a countertrend with two levels of Resistance and Support (called flags). The price forms this pattern after a strong increase. It then breaks out of the Resistance and continues rising, marking the end of the pattern. This is a very common behavior of prices during an uptrend.
* After breaking out of the Resistance, the price can retest this new Support.
How to open an order:
Entry Point: Right after the candlestick breaks out of the Resistance.
Stop-Loss: At the bottom of the price channel (the lowest point of the support).
Target: At the price whose, from the entry point, the length is equal to the length of the flagpole.
* In the future, we will publish other patterns such as Triangle, head and shoulders, wedge and other educational materials 📚 . Please follow our page to be informed as soon as the materials are published.
Thank you all for supporting our activity with Likes 👍 and Comments ❤️
* One of the most common patterns of price trend continuation is the FLAG pattern. How to identify this pattern? How to use it in trading most effectively?I will cover it all through this post.
* The Flag pattern is a type of price pattern in bullish trends. This pattern consists of a strong increase (called a flagpole), followed by a countertrend with two levels of Resistance and Support (called flags). The price forms this pattern after a strong increase. It then breaks out of the Resistance and continues rising, marking the end of the pattern. This is a very common behavior of prices during an uptrend.
* After breaking out of the Resistance, the price can retest this new Support.
How to open an order:
Entry Point: Right after the candlestick breaks out of the Resistance.
Stop-Loss: At the bottom of the price channel (the lowest point of the support).
Target: At the price whose, from the entry point, the length is equal to the length of the flagpole.
* In the future, we will publish other patterns such as Triangle, head and shoulders, wedge and other educational materials 📚 . Please follow our page to be informed as soon as the materials are published.
Thank you all for supporting our activity with Likes 👍 and Comments ❤️
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