Flags can be categorised as a continuation pattern. They represent a brief pause and are seen right after a big move. The price action continues in the same direction after the pause. Research has shown that these patterns are some of the most reliable continuation patterns.
Bullish flags are characterised by lower tops and lower bottoms, with the pattern slanting against the trend. The flag trend lines run parallel.
The Bindal FX strategy tends to look for a confluence of events; in it's trading strategy. In the following trade, for the CHF, there were 6 such confluences of events, which are taught on the home study course. The Flag being just one of them.
Below is an example of a Bull Flag continuation pattern in CHF
The above trade produced nearly 300 pips.
When have many confluences of events, it normally produces massive profits. I often say to the Bindal FX members, don't trade if you don't have to – Have patience, and wait for a signal.
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