Flag pattern FOREX strategy

We present you with strategy using combination of forex patterns – flags and cocktail of indicators: MA + Volumes, to find correction within major trend.

Once we identify small trend (correction) within our major trend, we can precisely time our position entry at the end of minor trend corection. This excelling timing method provides us with great risk reward ratio and tight stop loss.

 

Tools used in forex strategy

Any timeframe and currency pair. Preferably majors and 15 min timeframe.

EMA 200 (exponential moving average)

EMA 21 (exponential moving average)

Volumes forex indicator (default settings)

EMA 21 (applied in first indicator data – volumes window)

Rules for the forex strategy

 

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

 

We identify the trend

Uptrend: EMA 21 above EMA 200

Downtrend: EMA 21 below EMA 200

 

Entry long.

We are looking for downward sloping flag in uptrend. After the resistance breakout (upper trendline), we look at the volume on breakout candle. Volume must be above EMA 21 applied in volumes window, signalising above average activity in breakout candle. We enter long, placing stop loss at the lowest low reached in flag forex pattern.

 

Take profit: After price surpasses the highest high previously reached in the flag fpattern, we can either close position immediately, or we can place stop loss to break even and let position roll.

 

 

Entry short.

We are looking for upwards sloping flag in downtrend. After the support breakout (bottom trendline), we look at the volume on breakout candle. Volume must be above EMA 21 (applied in volumes window), signalising above average activity on breakout candle. We enter short on candle close, placing stop loss at the highest high reached in flag forex formation.

 

Take profit: After price falls below the lowest low previously reached in the flag formation, we can either close position immediately, or we can place stop loss to break even and let position roll.

 

 

 

Please reload

ABOUT US

THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com