فوركس ساتو

SLOPING CONSOLIDATION OR FLAGS – These are also quite easy to
trade. They are traded similar to how you would trade a regular sideways
consolidation with one notable exception – you only trade through the range
in the direction of the slant (slope).
Why are both “flags” and “sloping consolidations” dealt with together in this
one section? Simply put, what might appear as just a flag on a larger time
frame chart will often appear as a “sloping consolidation” seen on a smaller
time frame chart. What you call it is often relative to the perspective you are
viewing it in.

Note the “flags” on this uptrend seen on the hourly charts. In a smaller chart
these are definitely consolidations.
Often you’ll see a sloping consolidation during the “consolidation times”
(outside of market overlap times). You’ll frequently encounter them between
13:00 EST and 02:00 EST (the evening hours in the Americas), however you
should note that often during these times the consolidation is relatively narrow
(sometimes so narrow that it isn’t worth trading). The consolidation needs to
be at least 10 pips tall before entertaining the idea of scalping the range.
Take a look at the following 5 minute chart:
Now here is a question for you. Is this a sloping consolidation or simply a
downtrend? Or would you consider this to be a flag? How steep does a slope
have to be to consider it a trend vs. a sloping consolidation? The answer to
this is subjective, so it is left to your personal interpretation of how you see
it. Whatever you decide to call it, it is what it is, and it certainly qualifies to
be traded according to these methods.
What you do is you connect the tops with a trend line and the bottoms with a
trendline to form your confinement range. The lines don’t have to be parallel
(as they are obviously converging in the above chart), but they both should be
slanting in the same direction (otherwise you’d have a triangle). Usually
you’ll see the lines converging, but occasionally you see them
diverging. When you see them converging sharply then you might want to
consider whether it is an ascending/descending triangle.
Note that if you are trading a long sloping consolidation (as might happen
during the EST evening hours outside of market overlap times), then you
might have to readjust your trendlines from time to time as the market snakes
along. Over time the slope might change in steepness, and the range could
widen or narrow. As you observe this happening then simply make the
necessary adjustments to your confinement trendlines.


This chart shows what I’m talking about. The range is quite small, barely
worth trading, but still doable. Notice that the steepness gradually changed
during the sloping consolidations (there are two on the chart). Also notice that
in the middle of the chart the market rallied up then resumed a downtrending
sloped consolidation. If you were trading this session then you would have
needed to make several readjustments. What is also interesting to note is that
the trendline of the tops from the first half of the chart still held resistance
(kind of) for the second half of the chart.
Here are a couple of examples of larger sloped consolidations / flags seen on
hourly charts:
You could have easily scalped at least one run through this range (going up as
of 07/15).
Notice on this second chart you have a couple of false breakouts creating
Bull/Bear traps. Keep in mind that when scalping you have an advantage for
the times that these traps occur as you’ll often profit from them rather than
loosing like most other traders. Once it returns to inside the range you simply
resume “within range” trading until it breaks out again.
Here is a brief review of trading with flags and sloping consolidations. Draw
your confining trend lines. You trade this much like you would a regular
consolidation except that you usually (ok, you can get away with trading
against the slope if the steepness is shallow) only trade in one direction; the
direction of the slant.
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