A flag can be used as an entry pattern for the continuation of an established trend. The formation usually occurs after a strong trending move that can contain gaps (this move is known as the mast or pole of the flag) where the flag represents a relatively short period of indecision. The pattern usually forms at the midpoint of a full swing and consolidates the prior move. Price is contained by 2 parallel trend lines that lie close together and are sloped against the mast.
Bullish flags can form after an uptrend, bearish flags can form after a downtrend. The pattern has completed when price breaks out of the containing trend lines in the direction of the prevailing trend, at which point it will likely continue its course. Conservative traders may look for additional confirmation of the trend continuing. The target can be estimated through the technique of measuring the length of the mast and extending it in the direction of the breakout. A common stop level is just outside the flag on the opposite side of the breakout.
Previous analysis worked out very nicely, actually even seen both pattern play out. One quick drop (small bear trap) completing the wedge and because it was a wick also keeping the double bottom alive. So far it is looking very good, almost perfect even. Now this kind of trade can become a big win. If we see that bull flag play out coming days, it's the perfect...
Yesterday I shared an idea on the GBPUSD talking about a potential move higher to the $1.31-$1.32 levels and there being 2 ways to attack that type of trade.
1) The pullback trade which was featured in yesterday's post and 2) A breakout trade which I'm featuring today.
Currently price action has come off of a high momentum Bullish move and is now in a period of...
BTC has found support at 7500 level, and jumped above 8000 lately.
Now it's correcting a flag formation.
Watching the breakout of this formation may provide us a short term swift move.
Thank you for your likes and support
Good luck
I am looking for a move lower within the main bearish trend as the price may have formed a bearish flag.
Targets start at latest low at 1.7855, then the 1.618 extension for the flag pullback at 1.7740. And finally 1.7615.
So the wedge did play out and reached it's target, but nothing more than that. At the moment, it looks as if it doesn't want to drop. Have what looks like a bull flag on the left, bumping against the resistance, which is normally a sign that it wants to break it. However, when looking at the volume, that is not how a bull flag should be. Volume normally needs to...
Price has hovered along the ascending channel creating a bear flag with a clear bottom and two tops.
Price moved up correctively and a position has been entered on the break in the same direction as the higher time frame (short, 15 pip stop).
First target to the bottom of the bear flag pattern for break even.
Second target to beginning of the ascending channel for +8%.
We seemed to break out above the flag today after the FED confirmed rate cut which is bullish for Gold. The volume on this bull flag is perfect, you can see volume was moving higher on the flag pole, then dropped on the flagging, and is now moving up on the flag pole up. Confirmation is above $135 my measured target is $140.22. From here that is roughly a 5% gain...
Hello all!
I have a potential setup for you this morning in Crude Oil on the 4 hour chart.
Crude Oil has made a potentially significant move to the downside (as evidenced by the new momentum low on the MACD, and the puncture of the lower keltner channel). Price has been consolidating since, and has retraced approximately 40%, as of the time of writing.
We...
Volatility down to breakout levels and daily chart is forming a bull triangle with minor support at 1400 and major zone at 1480-1460. The trend is still strong with MA20 & MA50 clearly pointing to higher highs. Now, looking for volume to drive the price through previous high which is a critical resistance level before the price start the climb ming for target 1.
a large price dump that was instigated by a 3hr chart deathcross has us now potentially about to break down from what looks like a double top on the 1 day chart...price action is currently below the neckline and is right now trying to retest that neckline...if the retest is rejected then odds are good we will break down from the double top and retest the 1 day...
We started scaling into BNB/USDT back in December 2018 after hitting a swing low of $4.50 - the same support level we saw in December 2017. Once it broke the 50-day MA it never looked back. BNB has been on an uptrend since then gaining 677%!
In May of this year we saw a 19% correction on BNB, which formed a textbook bull flag with the classic downward slant. We...
Analysing, i see most Chf pairs having a correctional bearish wave. Seems UsdChf is also to join the bears, showing signs of a bearish flag and and an HnS
CZ announced in a mediocre market that they will burn about half of BNB's supply. BNB didn't do any huge pumps yet but the confidence in BNB with this news and the textbook bullflag formation is a super bullish signal.
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