Hi traders,
this time i want to show you a flag pattern that is forming up in 1hr chart on AUDNZD. Here we recently broke and closed below an important structure level (black line), so we expect price to continue lower.
It is very usual to see consolidation patterns after impulse legs like this, and the likelihood is that market continues on the impulse leg's direction, even more so in this scenario where price action is free falling.
Given the conditions above, flag pattern can be traded two ways: you can sell the market as soon as price close below the flag's bottom line, or you can wait for a retracement and then sell with a better risk to reward. I would personally choose the second option. I would also leave a part of the position for further target.
If you have any question, fill the section below.
Otherwise, see you in the next chart!
this time i want to show you a flag pattern that is forming up in 1hr chart on AUDNZD. Here we recently broke and closed below an important structure level (black line), so we expect price to continue lower.
It is very usual to see consolidation patterns after impulse legs like this, and the likelihood is that market continues on the impulse leg's direction, even more so in this scenario where price action is free falling.
Given the conditions above, flag pattern can be traded two ways: you can sell the market as soon as price close below the flag's bottom line, or you can wait for a retracement and then sell with a better risk to reward. I would personally choose the second option. I would also leave a part of the position for further target.
If you have any question, fill the section below.
Otherwise, see you in the next chart!
Comment:
Flag invalidated. Now price is retesting support. Let's see if we can short the market there!