"Every case will be different, but the rule for getting out holds: what matters is that we have a rational formula for getting out which is worked out beforehand. - John Percival, trader and author: The Way of the Dollar "
Flags are continuation patterns representing a small pause in the market trend. They can be easily spotted as they appear right after a sudden and quick burst from a range. In dynamic and
quick markets, they tend to form as prices pause and usually tend to move in the same
direction as the prior trend after a clear breakout. Flags are known to be very reliable patterns.
Bull Flag patterns can be spotted when the market breaks out from a range and makes
lower highs and lower lows in a tight formation. The trend lines connecting these highs
and lows are near parallel. Also, tight and well defined Flags perform better than short and
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THERE IS EQUAL OR GREATER POTENTIAL FOR LOSS WHILE USING THIS STRATEGY AND TRADE SETUPS.
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