USDJPY: 2 Ways to trade this Bullish Flag

Flag patterns are one of the many simple patterns that I used to trade before I was a consistently profitable trader. Like many of the strategies that I used back then, I assumed that flags didn't work because i couldn't make profit off of them. After realizing that it was ME and not MY STRATEGY that had the problem, I find myself implementing a lot of what I used back in the day with a brand new perspective since I'm not a lot more knowledgeable about structure and price action.

This chart features a bullish flag pattern on the USDJPY 240 chart. It can also be seen pretty clear on the 1 hour. They key to this particular pattern is the fact that it has formed by putting in an HHHL which signal of bullish continuation. So price action showing me bullish continuation + Bullish Flag pattern = Look for a chance to get long.

There are a few ways to handle this trade and I've picke dout 2 to share with you. 1) Wait for a retest of the simple pattern lows and look to play the breakout. Or 2) wait for the breakout and retest. We've got resistance ahead aligned with fibonacci confluence to use as out target zone, with stops being below out flag pattern support level.

Akil
Akil@Tradeempowered.com