Hey Everyone, in this chart we have a very clear pattern FLAG on the 4H timeframe and on the 1h timeframe. this pattern consists of three sides:
1- the trend line side:
if this side is broken then we will have to wait for a nice retest and then enter our trade which will be in the opposite direction of the trendline ( in our EURUSD it will be a sell trade).
2- the resistance area:
it is a very strong area that pushes the price very hard to the downside, once this area is broken we can enter an easy buy trade directly or we can wait for a good confirmation and a nice retest for the area.
3- the target side :
in most of the chart patterns these patterns gives you an indication of the amount of pips you are waiting for. the third side of the FLAG pattern is actually your target for the trade, try to take between 20 to 50 pips less than what is showed on this side.
so as a conclusion of the EURUSD analysis we are waiting for a good break to the trendline or the resistance area and then we can determine what our next step and if we will enter a buy or sell trade
1- the trend line side:
if this side is broken then we will have to wait for a nice retest and then enter our trade which will be in the opposite direction of the trendline ( in our EURUSD it will be a sell trade).
2- the resistance area:
it is a very strong area that pushes the price very hard to the downside, once this area is broken we can enter an easy buy trade directly or we can wait for a good confirmation and a nice retest for the area.
3- the target side :
in most of the chart patterns these patterns gives you an indication of the amount of pips you are waiting for. the third side of the FLAG pattern is actually your target for the trade, try to take between 20 to 50 pips less than what is showed on this side.
so as a conclusion of the EURUSD analysis we are waiting for a good break to the trendline or the resistance area and then we can determine what our next step and if we will enter a buy or sell trade
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.