Trade a bullish flag pattern and trade a Bearish flag pattern ( Tip for newbie trader)

in trade •  7 years ago  (edited)

The flag is a trend continuation pattern. It starts with an impulse 1 move which
represents the poll followed by a consolidation which retraces the initial
move this forms the flag. after the flag has been broken in the direction of the
first impulse move you would look for a second impulse move stretching the
length of the first.

n2.png

-----Breakout-----
(1) Wait for a clear Flag Pattern to form.
(2) Buy a break of previous high.
(3) Stop below the flag Low.
(4) Target is a 100% extension of the first impulse move.

-----PullBack-----
(1) Wait for a clear Flag Pattern to form.
(2) Wait for price to break and close above previous high.
(3) Buy pullback at previous high. (Usually happens 1 candle after the break)
(4) Stop below the flag Low.
(5) Target is a 100% extension of the first impulse move.


n3.png

-----Breakout-----
(1) Wait for a clear Flag Pattern to form.
(2) Sell when price breaks the previous low.
(3) Stop above the flag high.
(4) Target is a 100% extension of the first impulse move.

-----PullBack-----
(1) Wait for a clear Flag Pattern to form.
(2) Wait for price to break and close below previous low.
(3) Sell pullback at previous low. (Usually happens 1 candle after the break)
(4) Stop below the flag Low.
(5) Target is a 100% extension of the first impulse move.


Tips for newbie trader, please help upvote me. thank you.

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Thank you for the very detailed guide. https://9blz.com/bear-flag-pattern/