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Tradingflagpatterns

Bull flags explainedBull Flags are one of the most well known & easily recognized chart patterns. The most important factor in identifying any flag pattern is the clear "staff" or "flagpole"; there should be a straight run upwards leading up to the pattern or it is not a valid pattern. After the straight run upward price starts to Zig Zag between two converging trendlines forming a tight wedge (it can be slanted, or even symmetrical) until the price "breaks out" above the upper trendline signifying a possible continuation in trend upwards. Bull Flags have the highest success rate out of any pattern and work extremely well when paired with long term support & resistance areas. Enter at the invalidation point of the pattern (A), second entry on the bullish retest (B). Pennants that are “tighter” have higher success rates, look for patterns forming on top of long term resistances (not below) to increase probability of success also. Pattern height is measured and added to swing low before breakout for possible target. Sometimes large size traders can generate liquidity by faking out under the pattern support as we can see on some of the examples. The liquidity generated by triggering stop losses underneath the pattern can fill large position sizes for whales and is a good indicator for a long position once the price confirms support back inside the pattern.
Education
by Worth_The_Ri5k
10-9-19 USDCAD on the verge?Another Forex Trading Snack. I’ve been following the USDCAD for sometime looking and waiting for a great opportunity to possibly trade it. But for some time it hasn’t followed oil, or the other commodity currencies. Currently though it has made a very good looking bullish Flag pattern inside of a bigger triangle, which happens to be inside of a even bigger triangle. I know patterns in side of patterns... the flag pattern looks to have broken higher and looks to be very close to also breaking over the next patterned triangle marked in pink lines. ( flag pattern in gray lines ) Here is the daily landscape view... Now that the chart views are setup, here is what I’m looking for and hoping to do. I’d like to place an order to trade on the daily close to or just above the 1.3350 area. This will have broken not only the small flag pattern but also the pink daily triangle pattern, and this should target the 1.35 ish area or very close to the even bigger black triangle area. That’s the setup and what I believe should be a higher probability trade if and when.... Here is the rub. USDCAD of late has had a habit of having a false break or two and then exploding forward past those false break points. Just look at the gray patterned flag. Knowing this and where we are in the current price action, along with the China trade talks restarting again on the 11th, any positive news or a deal of some limited kind, and this could break higher. Now you know how I’m viewing it and looking at the landscape of this pair. If you trade this idea you are also assuming all risk of loss if there should be any. This is not trading advice, but for training purposes or an education on how I personally try to setup trades. In trading you either make dust or you eat dust. I’d hope you would rather stay out front and be making dust! All the best my trading warriors.
Long
by PipsTradingClub