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EUR/CAD — Quick Daily Bullish Flag

April 14, 2013 (Last updated on April 25, 2013) by

Less than a month has passed since my last reported bullish flag (on CAD/JPY @ H4). That time, it failed to come into play as the weekend gap had positioned the price significantly below the flag’s corridor. This time, the pattern is displayed in daily EUR/CAD chart and should resist weekend gaps more robustly. The pattern’s flagpole starts on the trading session of April 4 and lasts only two days, which is perfectly fine for a bullish flag pattern. The flag part consists of only 6 days, which can be considered as insufficient by some conservative chartists.

You can see the pole and the flag pattern marked with the yellow dash line on the chart screenshot below. The entry (cyan line) is positioned at 10% of the flagpole’s length above the highest point. The profit target (green line) is positioned at 100% of the flagpole’s length from that point. Only upward breakout will be used as a trading signal with this bullish flag. I will set my stop-loss to the low of the breakout bar or to the low of the previous bar if the breakout bar is located mostly outside the pattern. You can click on the image to see a bigger screenshot:

EUR/CAD - Bullish Flag on D1 as of 2013-04-14

You can download my MetaTrader 4 chart template for this EUR/CAD pattern.

Update 2013-04-15 10:45 GMT: Pending buy-stop order triggered at 1.33587 half an hour ago. Stop-loss is set to 1.3277, take-profit — at 1.3688.

Update 2013-04-25 21:02 GMT: Position has got stopped out after reaching only half of the planned target and consolidating a bit. Closed at stop-loss of 1.3277 today at 14:01 GMT.

If you have any questions or comments regarding this bullish flag on EUR/CAD chart, please feel free to submit them via the form below.

4 Responses to “EUR/CAD — Quick Daily Bullish Flag”

  1. Jacek

    Hi,
    How significant upward move must be to consider it a proper flag? Or in other words – do you have time exit from this trade if price would not reach the target within x days?

    Reply

    admin Reply:

    Significant enough to stand out from the previous price action. There is a lot of discretion in pattern analysis.

    No, I do not a have a time exit planned for this trade, but I will exit if some minor technical formation will point to the bearish side or a long-term consolidation.

    Reply

  2. Jacek

    Hi,
    Are you still in the trade after yesterday’s bearish candlestick?

    Reply

    admin Reply:

    Yes, I am still in the trade.

    Reply

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