flag pattern in the forex market are often but not strange, all describe what is usually a good pattern, but basically nobody detail was not clear working strategy Forex market entry , after was spotted this graphical combination.
propose to consider fairly simple system to enter the market, using this combination - "Flag + ABC".
Very often, it appears after prolonged or sudden movement and is nothing like konsalidatsii area for further continuation of the trend .
- For trade I recommend choose forex broker with Metatrader 4
consider the nature of forex strategy "Flag + ABC":
1. Find flick on the chart - pulse and observe how events develop in the future.
2. Ie it must be remembered that after a sharp movement is usually consolidation and now we wait and we .
3. Under this strategy, forex trading, do not need to conclude a deal on the first pullback - have to wait until we see the completion of forming a pattern "Flag".
4. Our task is to wait and see on the chart 3 waves: A, B, C in the pattern of the "flag" (see example below):
5. This combination of graphics, many different names - Volnoviki called her ABC . That's our job to wait for the moment, until it has the latest wave of C and only at the end of wave C will enter the market in the direction of the trend - in a limit order (in this case, Buy Limit). < / p>
6. But always keep in mind that only one ABC - that's no reason for the transaction. Since for entry to need to find at least 3-4 trading signal to the input - this can be divergence , rolled under Fibonacci levels (and very good If our point C would be exactly at the level of 38.2 or 61.8% Fibonacci of the previous motion ).
7. In this case, as soon as we have already identified the movement, and presumably we have point A and B - we are over the top (for the downward movement of the contrary) and point B - line and parallel to construct a parallel through A - then we have drawn channel .
8. And only now can on the channel line, carried out through a point A to put a limit order to buy or to sell, respectively, , but do not forget the extra trading signals - for example, or Fibonacci divergence , moving, support and resistance lines, trendline, etc. (See examples at the end of the strategy - which may be extra. Signals).
9. take profit I recommend to put on a low census hai, respectively, or to pull the same safety stop-loss in the positive zone with trailing stop .
10. safety stop-loss - set for next Fibonacci level - for example 50% or 61.8% is desirable - if C falls by 38.2%, etc. - If by 61.8% - 76.4% for the set - then I do not recommend, because on the market may just turn around.
11. Just do not forget that the market is not perfect, and point C tends not to reach or fall below the channel line corrective movement (on the limit order if not successful, then buy at the market price, if already formed a reversal bar).
And do not forget that these combinations occur not always need to be monitored on different time-frames .
Examples of "Flag + ABC" including in the promptness with different indicators, channels, muvinshami, Fibonacci levels:
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