Get $30 No Deposit Bonus With The #1 Forex Broker

Click the button below to claim your FREE USD30 No Deposit Bonus with the #1 forex broker worldwide


Get $30 Free Now To Trade!

Bull Flag Forex Chart Pattern

Bull flags are continuation chart patterns found within an up trending market. They are formed after a steep price advance by two tight parallel down sloping trend lines in a near 35-45 degree angle. The pattern is confirmed on a upward breakout of the bull flag.

Definition of Bull Flagpole: The price swing A-B leading to the top of the flag. The chart below illustrates.

forex-bullflag

Bull Flag Forex Trading Ideas

Once a bull flag pattern occurs on the forex chart, we will be looking to buy the currency pair as bull flags usually indicate the upside price action soon to continue.

Trade Entry
Wait for a sustained break of the upper bull flag trend line. Then enter long at market on the open of the next candlestick.

Stop Loss
Set stop loss below the lower bull flag trend line.

Trade Objectieve
The profit objective is an equal distance of the flagpole A-B which is then added to the bottom of the lower trend channel in the bullflag, or one could use prior resistance levels, pivot points, 1 to 2 risk-to-reward ratio’s… to exit the bull flag trade.

R-T-R Bull Flag Trade Example

Below is a 5 min chart on Euro/Dollar. We identified a bull flag pattern setup on Oct 14th and initiated a long position after the sustained break to the upside. Our trade entry was at a price of 1.4037, along with a stop loss at 1.4018. Our projected profit target was twice the risk taken at a price of 1.4075. Approximately 25 minutes later, our profit objective was achieved for 38 pips.

forex-bullflag-eurusd

Download Forex Analyzer PRO For Free Today!

Brand New Forex System With Super Accurate And Fast Signals Generating Technology.

Forex Analyzer PRO generates buy and sell signals right on your chart with laser accuracy and NEVER REPAINTS!

  • Up To 200 Pips Every Day
  • Buy And Sell Forex Signals
  • Advanced Daily Range Detection
  • Email & Mobile Trading Alerts
  • No Repainting Or Lagging