1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Chapter 14, Part VI. Flags and Pennants.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jul 7, 2011.

Thread Status:
Not open for further replies.
  1. Administrator

    Administrator Just Administrator :-)

    Joined:
    Sep 24, 2007
    Messages:
    5,526
    Likes Received:
    423
    Part VI. Flags and Pennants. [​IMG]
    Commander in Pips: Let’s continue with patterns and shift to the discussion of Flags and Pennants on charts…

    Pipruit: Yeah, this is quite pro-army topic, Sir.​

    [​IMG]

    Commander in Pips: Heh, right.

    Commander in Pips: So, Flags and Pennants are continuation patterns. It looks like triangles, wedges and rectangles, but much smaller and their shape is not so accurate like we saw with former patterns. Usually they appear as pauses in a trend:


    Chart #1 JPY/USD Weekly – Flags and Pennants
    [​IMG]

    The market mechanics of these patterns is simple. While they show tight consolidation, it tells us that the previous trend is strong and nobody is turning to profit fixing yet – it’s vice versa, people see tight consolidation, understand that nobody is exiting currently, and they jump in the direction of the previous trend. The move usually continues when a significant amount of new participants join the trend.

    Commander in Pips: As a rule the slope of these patterns is opposite to the direction of the trend, but this is not absolutely necessary. If the slope coincides with trend direction then it tells us that the current trend is even stronger. Also these patterns could be horizontal instead of sloped:


    Chart #2 JPY/USD Weekly – Flags and Pennants with different slopes
    [​IMG]
     
    #1 Administrator, Jul 7, 2011
    Lasted edited by : Mar 28, 2016
    knight270 and Hamza Samiullah like this.
Thread Status:
Not open for further replies.

Share This Page