Hi @runyt If you pick up any trading book you will find these patterns under the name tags of Bull Flag, Bear Flag, Pennant and Wedges. But at the time I did not pay any particular attention to these, then few years a go while I was listening a pod cast of Linda Bradford Raschke (market wizard), she mentioned her best performing pattern is the Bull/Bear Flag, and then I started collecting screen shots of every flag I see, and about a year later I found a thread called PIE - Price is Everything by a trader called Redword11 (One of the greatest traders ever lived) he explained the theory behind a bull/bear flag (I will try to explain it below). There are lot of price patterns that work, it is a matter of training your eye and finding a pattern that suits you. If you do a search for " Flag Trading Forex" you will find so much free resources online.
When I am looking for the pattern following is the story I tell myself
US Fed raised interest rates again sent stocks down and our AUD into the #8 spot,
yesterdays top trade CADJPY* did post a small gain.
The Yen has not been good to us as it tends to not spend a lot of time at any extreme, If you are long Yen keep a tight leash on it. I do like the USD here
Update to the bonus trade I put out last week, We can see after a two day pause price again made a nice move lower, look how the 200ma on the 1hr chart held price in check
The Yen has not been so good to us often this year but it is giving us a couple of good trades this week, Most recent Top SW Trades featuring the Yen are both up over 100 pips , not to bad and both saw a draw down of less than 30 pips before moving in our direction
I watched this Flag formation for about a month but was not confident to trade it. I wish somebody could teach me how to get into these trades at the tip of the flag with a tiny stop loss and get out at the pole. lol
Back then there was a site called RTM (Read the Market) run by a person called Ifmyante, they claimed they had a method to get into these trades with a 2 pip stop loss but never learned a thing from that site.
I normally see them as retracements against the actual trend, now you are making me see them as flags. I didn’t use to draw lines, now I do.
Are you getting into my head?
I have been trading them on the 1hr TF on AUDJPY, 3 winners.
