Exhaustion Flag Pattern | Forex & Stock Education | Got Return? Become An Investor
Risk Warning : Trading Forex, Stock, and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure you fully understand the risks involved before trading or investing, and if necessary seek independent advice. Flag Pattern Flags are short-term continuation or reversal patterns that mark a small consolidation before the previous move resumes or ends. These patterns are usually preceded by a sharp advance or decline with heavy volume. Types of Flag Pattern : Based on Flag's direction, there are 3 types of Flag Pattern. 1. Common Flag : Flag Direction - Down. 2. Rectangle : Flag Direction - Horizontally Parallel. 3. Exhaustion Flag : Flag Direction - Up. Exhaustion Flag : Exhaustion flags are those that happen at the end of a good up- or downtrend. They provide the major signal of the end of that move. Example : An Exhaustion Flag was formed at GBP/USD pair on the 4hr time-frame at the starting...