Forex Videos

The Bullish Flag Chart Pattern is a trend continuation pattern that allows the trader to enter an existing uptrend. The pattern forms what looks like a rectangle that is gently falling to the right side. The 2 trendlines forms the rectangle and act as support and resistance. This is the EUR/USD 15 min chart. After an extensive move to the upside the bulls lose strength in the market. The bears hold the price from going further up. As a result price consolidates and gently makes lower highs and lower lows. The bears push the price slowly in the opposite direction of the original trend giving the pattern its rectangular shape. The bulls then gather more power and eventually price breaks and to the upside. We enter a trade when price breaks out in the direction of the original uptrend and closes above the upper trendline. The stoploss is set right below the lower trendline. For the profit target the distance of the last swing is measured before the flag pattern appeared. The same distance is placed above the point where the flag's upper trendline ends.