What is a forex flag pattern?

The forex flag pattern is a chart pattern that appears when a trend begins to accelerate. It consists of a few large candles in the direction of the trend and a smaller retracement thereafter. It suggests another big move in trend direction. The bullish flag occurs when the price quickly shoots up and begins consolidating.

What is a flag pattern in technical analysis?

A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole). Flag patterns are accompanied by representative volume indicators as well as price action. Flag patterns signify trend reversals or breakouts after a period of consolidation.

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.

What is a flag chart pattern buy strategy?

The flag portion of the pattern must run between parallel lines and can either be slanted up, down, or even sideways. A forex trader may look to enter a trade when the prices break above or below the upper or lower trendline of the flag. The key thing to remember is the volume and trader’s position choices. Flag chart pattern buy strategy