How to Trade Bullish Flag Patterns

How to Trade Bullish Flag Patterns explained by professional Forex trading experts the “How to Trade Bullish Flag Patterns” FX trading team.

How to Trade Bullish Flag Patterns?

There are many different patterns that traders follow to help time entries and exits. The flag pattern is one that tends to catch my interest when I find it because they can provide explosive moves. The AUDCAD appears to be in the middle of a potential bull flag pattern. Today, we will look at how to identify higher probability trading opportunities off the bull flag pattern.

The flag pattern is fairly simple with just three components.

The flag pole
The flag
A strong up trend

If we fast forward to today, the AUD/CAD continues its march higher. Prices are currently consolidating sideways in a gently down ward sloping price channel. Therefore, we have an opportunity to enter into a trade with at least a 1:2 risk to reward ratio.

Look for an entry near the bottom of the black price channel as support to go long. Place a stop loss just below the swing low. So that means an entry near 1.0637 with a stop near 1.0590. Once prices reach the top of the black channel, look to move the stop loss to break even. If this pattern holds up, the AUD/CAD cross rate could move to 1.10.

How to Trade Bullish Flag PatternsConclusion

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