How to trade the Bearish Flag Pattern
What is Bearish Flag Pattern Called?
The Bearish Flag Pattern is used by traders to predict the market momentum which is based on technical analysis. A bear flag is the pattern that tells us about the opportunity of more downward trend following with the flag pole area.
How to find the Bearish Flag Pattern on your charts?
It is very easy and simple to find the Bearish Flag Pattern on your charts by following some key concepts and this knowledge is applicable on all financial markets including Forex.
- First of all you need to find the flag pole as you can see in the image. The market should be trending down like this with good bearish candles.
- After the first step you will see the consolidation in the market following the slight upward trend as I have shown in the image by making a channel.
- Number 3, you need to wait for the candle to break your channel with a bearish candle and all the setup is 100% complete to trade.
Lets summarize it.
- It will be preceding downward trend
- You need to identify the upward direction consolidation
You need to wait for the price to break the consolidation area with a good bearish candle.
Some traders try to find the Bearish Flag Pole on smaller time frames which is not good because the market is very noisy on the smaller time frames.
Forex patterns always help you in identifying the expected moves. Bear Flag Pattern is one the pattern that we often see and ignore because we don’t look the charts the way they deserve.
NOTE: 200 Forex Pips is providing the 1 hour training for Price action and give 100% guarantee about the understanding of charts. If you want to trade naked charts for profitable trading and you want candles to tell you about the next move then book your 1 hour of training by clicking HERE.