Here we have a valid pattern on FX:EURUSD , that is still in the consolidation phase (flag portion). Flag patterns are also considered as consolidation patterns, just like any other ( , bat, , , ). This pattern is usually formed after a strong movement in price action. There are 3 main parts to this pattern: the flag pole, flag portion, and the continuation portion. After a strong movement, a strong selloff in this case, the market starts to consolidate and we expect the market to breakout in the direction of the flag pole, in our case to the downside.
After getting the breakout, the target is equal to the length of the flag pole, which is 355 pips for this setup. Notice that our target lines up exactly with the 2015 July lows, which could act as potential . Also a key point to keep in mind is that, the longer the market stays within the consolidation zone (flag portion), the stronger the breakout to the downside will be. The invalidation point for this is when we get a break AND close above the upper rising of the flag portion. See the chart above for more details.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)