Trend Continuation Patterns
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Flag Patterns in Binary Trading
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No Comments It depends on the market whether you get bullish or bearish flags which can be useful patterns. They represent continuation patterns, which means that a pattern moves where the prior trend moves, and after consolidation, they are supposed to be marked according to Elliot Waves Theory and structure. The consolidation area can predict future price movements with great precision, whereas some of the factors which need to be regarded include the following: The actual consolidation is indicated by zigzag patterns in double and triple patterns whereby it can represent a double or triple combination. There are no impulsive movements and the lower area displays almost steady corrections which stay more or less the same; Before the price actually breaks the range, up or down, one has enough time for a measured move which will indicate the future prices. In order to calculate the measured move, one has to look at the distance that price had traveled before the consolidation area appeared, which is called the flag and it is revealed when the upper or lower trend move exceeds the range in any direction.
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Trading with Flag and Pennant Chart Patterns
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- Review Binary Trading Using the Flag Pattern Many traders use the flag pattern as a signal to trade a touch option, as once a flag is complete, prices will generally move at about the same rate for around the same amount of distance as before the creation of the flag.
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