FLAGS FORMATION
Bearish Flags usually occur as markets fall from a base and pause in a downtrend. Bearish flags can be easily spotted as they make HH and HL within the flag area. A clear breakout downward gives us confirmation to trade these patterns as the price continues in the same direction of the trend. Flags are potential chart patterns
Trade: After higher high tops and higher low bottoms, prices will break out of the lower trend line. Wait for confirmation of breakdown with a reversal candlestick to go SHORT.
Target: Leg A in a Bearish flag should be used as your Leg B length which is used as the target.
Stop Loss: Place a stop-loss order above C the previous High.
Trade: After higher high tops and higher low bottoms, prices will break out of the lower trend line. Wait for confirmation of breakdown with a reversal candlestick to go SHORT.
Target: Leg A in a Bearish flag should be used as your Leg B length which is used as the target.
Stop Loss: Place a stop-loss order above C the previous High.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.