The best trading strategy to trade by the flags

[best forex]

The best trading strategy to trade by the flags
Flags GUIDELINES

Bullish Flags short sloping rectangle bounded by two parallel trend lines. Breakout is upward.
Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag
These formations usually form near the midpoint of a steep, quick price trend. If you do not have a strong advance or decline leading to the chart pattern, ignore the flag
Price action bounded by two parallel trend lines. Prices
usually go against the prevailing trend: They rise in a downtrend
and fall in an uptrend, but exceptions are common
Break:
For a bullish flag, a break above resistance signals that the previous advance has resumed. For a bearish flag or pennant, a break below support signals that the previous decline has resumed.

Targets:
The length of the flagpole can be applied to the resistance break or support break of the flag to estimate the advance or decline
Measure rule
Calculate the price difference between the start of the trend and
the formation. Prices should move at least this amount above (for uptrends) or
below (for downtrends) the end of the formation this is preferred for most forex trading signals provider

flags are common formations, identification guidelines should not be taken lightly. It is important that flags are preceded by a sharp advance or decline. Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk
buy after price breakout above the flag pattern and take profit equal flagpole + the lowest point of flag

 

[hatemypips]

The best trading strategy to trade by the flags
Flags GUIDELINES

Bullish Flags short sloping rectangle bounded by two parallel trend lines. Breakout is upward.
Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag
These formations usually form near the midpoint of a steep, quick price trend. If you do not have a strong advance or decline leading to the chart pattern, ignore the flag
Price action bounded by two parallel trend lines. Prices
usually go against the prevailing trend: They rise in a downtrend
and fall in an uptrend, but exceptions are common
Break:
For a bullish flag, a break above resistance signals that the previous advance has resumed. For a bearish flag or pennant, a break below support signals that the previous decline has resumed.

Targets:
The length of the flagpole can be applied to the resistance break or support break of the flag to estimate the advance or decline
Measure rule
Calculate the price difference between the start of the trend and
the formation. Prices should move at least this amount above (for uptrends) or
below (for downtrends) the end of the formation this is preferred for most forex trading signals provider

flags are common formations, identification guidelines should not be taken lightly. It is important that flags are preceded by a sharp advance or decline. Without a sharp move, the reliability of the formation becomes questionable and trading could carry added risk
buy after price breakout above the flag pattern and take profit equal flagpole + the lowest point of flag

Have you carried out proper verification of these guidelines in backtesting? What are its results?

 

[J_C_Anderson]

Flag is one of the best patterns, and it works well, especially during the beginning of the trading session, but do you have any screenshots to understand the details better ?

 

[mason_ritter]

I often use flags to trade. Also, I too would like to ask for a few screenshots to go with your explanation, if you don't mind.

 

[Edith1995]

I have used flags coupled with EMA 10,25 . Can i say that you are good to go with these strategy if you grasp points to place Stop loss !

 

[mason_ritter]

I'd add that if the more cautious traders usually open their position after a breakout and after the price has returned to test that breakout.

 

[Merk Porter]

What I love about trading is: a foreign currency exchange trader can select his trading strategy to fulfill his trading needs. But we must take care of our trading needs before we can start trading with any strategy. Since a forex trader must choose his actions, brokers or methods as per his trading and financial abilities so that he can bear the risks according to his own ground of acceptance.

 

[mason_ritter]

How do you prefer to trade flags?