moneymaking
Short

EURUSD: CURRENTLY IN A BEARISH FLAG PATTERN ON 4 HR !!!

FX:EURUSD   Euro / U.S. Dollar
284 7 9
Hello Traders,

Here we have a valid bearish flag 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 harmonic patterns ( cypher , bat, butterfly , crab , gartley ). 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 flag pattern target lines up exactly with the 2015 July lows, which could act as potential support level . 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 flag pattern is when we get a break AND close above the upper rising trend line 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 :)
Comment: UPDATE #1: Hello Traders, market has broken and closed above the upper rising trend line of the flag portion, thus making this short setup invalid. Focusing towards future trade setups :)
Agree, i think price should break to the downside. The consolidation will end very soon. Regards.
+2 Reply
IvanLabrie FullTimeTrader
I tried fib time and it should be this week, or my wave count is wrong.
How do you see it currently?
Reply
FullTimeTrader IvanLabrie
Im expecting an UGLY series of corrective structures abc or wyz to the downside possibly reaching last D1 lows (1.04) or exceeding it slightly. Long term bearish.
Reply
IvanLabrie FullTimeTrader
I see. My view is that it will rebound sooner than people expect, tied to falling equities after this week. But I'll try to ride the short meanwhile.
Reply
moneymaking FullTimeTrader
Hey mate, thank you. Will be waiting for that breakout. Good luck :)
Reply
Same view, except I think the flag is part of a larger structure and will stop before hitting targets here. Still a good short.
Good catch.
+1 Reply
moneymaking IvanLabrie
Hey mate, yeah would be a really nice short. All the best :)
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out