Bull Flag : A bull flag forms in bullish trending markets - and we may be entering one of the biggest bull markets after 2018. After a strong bullish movement when this pattern forms. it signals the market that the price is likely to move higher via continuation patterns. A continuation pattern is a measured move (please see the chart above on the left).
How to identify and Trade Bull Flags : It is quite easy to identify a bull flag - actually probably one of the most simplest of all patterns to trade as long as you know which market you are in. A bear flag is vice versa and works in bear markets, but since we are in a bull market by general public sentiment - we will revisit this pattern soon. you just need to look for a Bullish Vertical Rally or Trend which is Pole of the Flag then identify the consolidation which will look like either horizontal channel or downward channel which will be the Flag. After identifying the pattern you can enter at the bottom of the flag or you can enter when price breaks out of the upper trendline of the flag which is more safe (safer).
The breakout may also be a possible FAKEOUT which is why we will take help of Volume and RSI Indicator to confirm the breakout - but again, we are focusing only on the pattern. An invalidation is also shown above in the chart.
(*Key things to know : If the retracement of the measured Flag Pole retraces more than 50% of the pattern, it becomes weak and it may not be a Flag Pattern but sometimes it stays valid if it breakouts above the uppertrend of the flag.)
Stay Tuned for More! 👍
Like this tutorial & share your comment below!
How to identify and Trade Bull Flags : It is quite easy to identify a bull flag - actually probably one of the most simplest of all patterns to trade as long as you know which market you are in. A bear flag is vice versa and works in bear markets, but since we are in a bull market by general public sentiment - we will revisit this pattern soon. you just need to look for a Bullish Vertical Rally or Trend which is Pole of the Flag then identify the consolidation which will look like either horizontal channel or downward channel which will be the Flag. After identifying the pattern you can enter at the bottom of the flag or you can enter when price breaks out of the upper trendline of the flag which is more safe (safer).
The breakout may also be a possible FAKEOUT which is why we will take help of Volume and RSI Indicator to confirm the breakout - but again, we are focusing only on the pattern. An invalidation is also shown above in the chart.
(*Key things to know : If the retracement of the measured Flag Pole retraces more than 50% of the pattern, it becomes weak and it may not be a Flag Pattern but sometimes it stays valid if it breakouts above the uppertrend of the flag.)
Stay Tuned for More! 👍
Like this tutorial & share your comment below!
Commento:
Example: Bull Flag (BTC)
Commento:
Another way to readjust trendlines!
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Idee correlate
