What is a flag and pole pattern?

A flag and pole pattern describes a specific chart formation used to identify the continuation of a previous trend from a point at which the price moved against the same trend. In this pattern, the price makes a sharp move in one direction, reminding the viewer of a pole on a flagpole.

How does a flag pattern work?

As the Flag pattern emerges, you will see a large impulse move, commonly known as the Flag Pole. This is followed by a brief consolidation which takes on the appearance of a Flag. Once the Flag Pole has been formed, a valid Flag pattern begins to trade within a tight range, forming the shape of a flag.

Is the flag pattern a good chart pattern?

The Flag pattern is a great chart pattern that you MUST add to your forex trading arsenal! You must have found yourself in this situation… You waited for a pullback that never came… The market only moved higher without you… I know it sucks! However, you can easily fix this problem. In this article, I will teach you how to trade the Flag pattern.

How to trade a flag pattern?

The Flag pattern gives two lines running parallel to each other. -The best time to trade the Flag pattern is after a breakout. The breakout acts as a confirmation of the Flag pattern. -You can also trade the Flag pattern when it is showing a strong trending market. -Always place a stop loss order at the lowest point of the Flag pattern.