FLAG pattern Definition: A FLAG pattern is a continuation chart pattern, named due to its similarity to a flag on a flagpole.
A flag is a relatively rapid chart formation that appears as a small channel after a steep trend, which develops in the opposite direction. After an uptrend, it has a downward slope. After a downtrend, it has an upward slope.
IMPULSE Definition: A “flag” is composed of an explosive strong price move forming a nearly vertical line. This is known as the "IMPULSE" or ”flagpole”. The sharper the spike on the flagpole, the more powerful the bull flag can be. Corrective Wave Definition: After an uptrend, it has a downward slope. After a downtrend, it has an upward slope. This downward or upward slop known as "Corrective Wave".
Flag patterns can be bullish or bearish:
A bullish flag is known as a Bull Flag. A bearish flag is known as a Bear Flag.
How to Trade FLAG Patterns: When the trend line resistance on the flag breaks, it triggers the next leg of the trend move, and the price proceeds ahead. Breakouts happen in both directions but almost all flags are continuation patterns.
This means that Flags in an uptrend are expected to break out upward and Flags in a downtrend, are expected to break out downward.
❤️ If you find this helpful and want more FREE forecasts in TradingView
. . . . . Please show your support back, . . . . . . . . Hit the 👍 LIKE button, . . . . . . . . . . Drop some feedback below in the comment!
❤️ Your Support is very much 🙏 appreciated!❤️ 💎 Want us to help you become a better Forex trader?
Now, It's your turn! Be sure to leave a comment let us know how you see this opportunity and forecast.
Trade well, ❤️ ForecastCity English Support Team ❤️