7# Flag Pattern Trading Forex System

Pairs: Any
Timeframe's: 60 min or hiher
Indicators: 100 Simple Moving Average (100SMA) 

Chart Patterns: Bull Flags and Bear Flags 

>

Long Entry
Price trades above 100 SMA. 
Bull flag pattern appears on the chart after a steep price rally.
Wait for a upward price breakout of the Bull flag
Enter long trade at market on the open of the following bar. 
Place stop loss 1 pip below the low of the lower Bull flag trendline
Utilize 1 to 2 risk-to-reward ratio to calculate trade objective. 

 

Bull Flag
Bull Flag

In the figure is a 60 min chart on AUD/USD. We identified a bull flag pattern setup on 28 march and initiated a long position after the upward price breakout of the Bull flag. Our trade entry was at a price of 1,0261, along with a stop loss 1 pip below the lower trendline at 1,0202. Our projected profit target was 2 x the risk taken at a price of 1,0380. ,our profit objective was achieved for 120 pips.

 

 


Short Entry
Price trades below 100 SMA. 
Bear flag pattern appears on the chart after a steep price decline.
Wait for a downward price breakout of the Bear flag. 
Enter short trade at market on the open of the following bar. 
Place stop loss 1 pip above the high of the higher Bear flag trendline. 
Utilize 1 to 2 risk-to-reward ratio to calculate trade objective.  

 

Bear Flag
Bear Flag

 In the figure is a 60 min chart on AUD/USD. We identified a bear flag pattern setup on 15 march and initiated a Sell position after the downward price breakout of the Bear flag. Our trade Sell entry was at a price of 0,9893, with a stop loss 1 pip above the upper trendline at . Our projected profit target was 2 x the risk taken at a price of 0,9765. ,our profit objective was achieved for 128 pips. 

 

 

Share your opinion, can help everyone to understand the forex strategy.

Comments: 1
  • #1

    bhavesh oza (Friday, 05 August 2016 09:42)

    download indicator

flag_and_pennant.zip
Compressed Archive in ZIP Format 25.5 KB