Flag and Pennant Pattern Indicator
Platform: MT4 Type: Pattern Last update: September 21, 2024The Flag and Pennant Pattern Indicator scans charts and automatically displays flag and pennants patterns. These are major trend continuation chart patterns. That gauge is an excellent choice for manual traders utilizing price action strategies. Most importantly, it’s a 100% no lag forex indicator!
Flag and Pennant Patterns Explained
As we already mentioned, the Flag and Pennant are trend continuation patterns. They usually occur at the end of a big move, just before the market resumes its movement in the original direction. In other words, these are just small market pullbacks followed by another strong momentum price shift. Take a look at the examples below:
Buy Signal
Follow these steps for a long trade:
- A major upward momentum takes place
- Flag or Pennant Pattern is plotted on the chart
- Candlestick breaks through uppper resistance line
- Set stop loss a few pips below the most recent market low point
- Take profit after reaching positive risk to reward ratio or use your own trade exit strategy
Sell Signal
Follow these steps for a short trade:
- A major downward momentum takes place
- Flag or Pennant Pattern is plotted on the chart
- Candlestick breaks through lower support line
- Set stop loss a few pips above the most recent market high point
- Take profit after reaching positive risk to reward ratio or use your own trade exit strategy
