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.
Do you have a question about the set up, or did you just want to share a negative comment?
WSM
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first nobody told you to trade it if you didn't like just go find your own idea and second if you win 100% of the time please let me know so i sell my house and send you the money to manage for me and third i follow Akil for too many years and let me tell you that i love to lose with him because he lose as any professional could lose still his loses ONE GOOD TRADE
PriceActionTrading
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Still a good trade though.
I have similar idea.
Shun-Jiru
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I think we all did.
Shun-Jiru
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Question: I notice it went the other way... what does that mean?
I understand that this is just a "strategy" and just like other tools like Gartley patterns, if you see a bearish bat wing pattern it will not always go bear.
Is this one of those times it didn't go the way you were anticipating?
I was also anticipating it break the 122.19 resistance line.
Shun-Jiru
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That being said... my brain said bull, but I saw this too:
HKM666
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ShunTaneka - This is what i beleive it must be,but i not certain ok?
In the Flag pattern you have to wait until the market breaks outside of the consolidantion area in order to test the previous retracement resistence (If the pole of the flag is bullish).
After it hit that point, then you should wait for the rally, that´s why you saw it go down first then up! First it tested the resistence then went up to the previous higher high!
In the Gartley pattern , i believe that you have to wait for the move X to A to B to C
You have the impulse leg from X to A. You use the Fibonnaci extensio tool in order to see if the move B to C in on the 1.272.
If so, then you trace the Fibbonacci Retracement from A to B and place your call or short, sell in the 1.78 (D) !
Then it´s just wait and watch the market roll over to previous support level (C)
Place your stop above X , collect your profit a little bit above C in order to see you get fill!!
That´s what i think it means, but i could be wrong!!
Only started learnig this one week ago!!
HKM666
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Sorry my mistake!!
In the Flag pattern what you should expect is for the break of consolidation area, then it goes up to test support (Previous support becames resistence), then it rolles over to previous support level!! In this case is the middle of the pole of the flag!!
It rolles over because the flag was bullish!
Sorry told i´m new at this!!
Maybe i got it right this time #Akil_Stokes
Akil_Stokes
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Good thought, however the "C" leg dips below the "A" leg which would invalidate the pattern. Aside from that the overall shape is dead on!