🟢🚩 FLAG pattern — Strong upward continuation
1️⃣ What is it?
A strong upward movement ---> followed by a narrow sideways correction resembling a flag ---> then a breakout upwards to continue the rise.
2️⃣ How do you recognize it?
The presence of a strong flagpole before the oscillation.
A slanted or horizontal sideways oscillation between two parallel support and resistance lines (the flag).
Volume decreases during formation and then increases at the breakout.
3️⃣ Practical trading plan:
Entry: After closing a candle above the resistance line of the flag.
Confirmation: Increased trading volume at the breakout provides greater confidence.
Take Profit: Measure the length of the pole and then add it from the breakout point → approximate target.
Stop Loss: Below the lowest point within the flag or below the support line according to risk management.
4️⃣ Risk management:
Do not risk more than 1–2% of capital on a single trade.
Adjust position size according to the distance to the stop loss.
Combine the signal with support/resistance levels and an appropriate timeframe (1H / 4H / D) to increase accuracy.
5️⃣ Quick tips:
Wait for the candle to close above resistance before entering — do not enter just on price touching.
Check the volume tool — a breakout with volume increases the chances of success.
Have alternative plans if the breakout fails (False Break).
🔔 Important note: This content is for educational purposes only and should not be considered investment advice. Always do your own research and manage your risks.
#Trading_Education
