What is flag pattern in forex trading?

The “Flag” pattern is a technical analysis tool in the Forex trading that predicts continuation of the current market tendency (trend) and consists of two parts: the “flagpole” and the “Flag” (the channel within which the price moves).

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.

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

What are the different types of flag patterns?

There are two types of flag patterns, namely, a bearish flag, known as a Bear Flag, and a bullish flag referred to as a Bull Flag. The Bull Flag pattern forms during bullish trends in the forex market.