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The concept of smoother market movements within a trend correction underpins trend continuation patterns like the Flag, the Wedge, and the Pennant. While these patterns differ in technical analysis, they share many similarities.
Each requires trend correction and has similar instructions for entry point, Stop Loss, and Take Profit. In everyday trading, it's common for traders to interchangeably refer to a Pennant or a Wedge as a Flag.
The basic strategy for these figures within a bullish trend is similar and requires the following actions
• Set the entry point where the higher boundary of the pattern breaks out.
• Place Stop Loss below the lowest point inside the pattern's body.
• Ensure your Stop Loss is less than 5% of your total deposit to calculate how much you should invest in this position.
• Place Take Profit based on your strategy. It can be a fixed price level, the nearest local maximum, or could be equal to the height of the previous movement.

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The market doesn't operate with absolute certainty.
However, analysts state that a trend movement is more abrupt, while corrections tend to move smoother. This phenomenon often precedes significant news or events.
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When a trader spots an ongoing trend, there's often uncertainty about placing an order. Will the trend remain, or will the next candlestick mark its end?
Trend continuation patterns shed light on the best moments to enter the market when the trend continues.
They can ensure the entry point is correct and the current trend will continue.
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