فوركس ساتو

FLAGS
What is a “flag”? A flag usually appears as a little pause in a
trending price. It is usually a small consolidation pattern with a
distinct slant. In an upwards price move, for example, you might
see a rather short period of time where prices stay within a parallel
range with a distinct slant downwards. Most often when a breakout
occurs the prices usually continue in the previous direction, but
sometimes does break out for a reversal. The slant usually occurs in
the opposite direction of the direction the prices were originally
trending.forex sato

The following chart shows you some flags. It’s not the best
example of flags, but I chose this poorer chart as it has two flags to
show you that they can be smaller and larger..forex sato
Notice how with the small flag that when the price broke through
the trend line it shot up nicely. If you were looking at a one-minute
chart you would have probably been able to catch a small wave on
it’s breakout as it moved 28 pips in that 5 minute candle.
The bigger one can more loosely be considered a flag. It’s actually
easier to see this as a flag when you zoom out a little. Anyhow,
what you would have done is to place your entry order at the top
there where it broke out from the trend line. If it was a false
breakout you would not get entered, but as it turned out to be real
you would have been entered there for a few nice pips (easily 20 or
30 pips – though the prices went even higher remember to go for
safer easier pips).
Though flags are usually very short term phenomena in contrast to
channels, read the following about “Consolidation Channels” as
flags are closely related. You will also notice that these flags appear
often on charts, but may be interpreted to be part of something else,
depending on how your mental filters look at them. For example,
the chart shown in the section on Fibonacci techniques below clearly
show flags when your mind is looking for them.
Before I finish off with this section let me give you one more
trading technique that you could do on flags. This works great for
small flags to catch profits when the price just leaps up and doesn’t
give you a nice wave to surf before it has gone too far (missed
FOREX Surfing Draft .forex sato
profits). This would have worked nicely on that small flag from our
chart example above. Simply place your entry order at that last high
with a 20 pip stop. Then employ Basic Variation 4, where you
would immediately replace your stop to the last low.forex sato
forex sato