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Flag Pattern on 4-Hour Chart Spells Doom for Platinum

April 7, 2013 at 21:02 by Vladimir Vyun

The flag pattern has formed on the four-hour chart of platinum. Such formation usually shows price consolidation before resumption of movement in the previous direction. The current pattern is bearish as it has occurred after a drop and suggests that the decline will continue. It should be not a surprise as in such case platinum will just follow other precious metals. Gold and silver prices were consolidating on the daily chart before a huge plunge and it is logical to assume that platinum will follow suit.

The yellow lines on the chart indicate the pattern itself. The cyan line (which is derived by subtracting 10 percent of the flag’s height from the flag’s bottom) suggests the entry point for positions in case of a breakout. If the price reach the level shown by the green line (which is at 100 percent of the flag’s height from the flag’s bottom), traders are advised to take profit.

Click the image to enlarge it to a full-size screenshot:

You can download the MetaTrader 4 chart template for this pattern.

If you have any questions or comments regarding this chart pattern for platinum, please feel free to reply below.

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