13. How to Trade the Flag/Pennant Patterns Like a Pro Part 1

[jurg2008]

nice & concise ! clearly explained and most helpful! ;)

[saweaq1]

good video

[SapereFX]

From what I've seen it's always a good idea when it breaks the pennant or flag in either direction to wait for it to retest the break line, as it improves the success rate.

[WHYDOYOUNEEDMYNAME]

Of all the technical signals flags and pennants are cuckoos.

[gengarjetty]

wait, so flags are just like rectangles, only the pole indicates the underlying trend? And penants are like flags, only like symmetrical triangles?

[Dasoopa]

Hi david, Any recomendations on how to calculate the points? and what are those?

where to set your objectives... howfar you think the trend is going to get...

thanks already

[6448595]

hi . i have a question !!!

can we make 1000$ everday from forex

and is moving average enough

[SapereFX]

@6448595 Add in some bollinger bands and support and resistance levels and you should be able to make a go of it.

[smokenfly514]

Dave, may I ask how you invest in stocks, more precisely.. Is it that you take a look at the financial statements and then figure out if the charts confirm your presumptions? Thanks a lot

[aniketwadkar]

hey guys all the patterns shown in the video are on a weekly time frame . can this be applied in a smaller time frame as well like an 30 min or hourly chart .

[SapereFX]

@aniketwadkar Yes it can be done on smaller timeframes. I've seen it done on a 4 hour chart by a professional trader.

[jazeppi79]

HI, when drawing your flag, pennant, or wedge trendlines do draw them at the tops and bottoms of the opening and closing of the candles or do you include the shadows? also when the price breaks to the upside or downside do you wait for the candle to close outside the trendline before entering the trade? Thanks great videos.

[ordgstrn]

Dave, you said at the beginning of this video that these patterns can be considered both reversal patterns as well as continuation but i dont understand. i was thinking that if a bearish flag occured in an uptrend then it was considered a reversal however if this is the case the pattern cannot be identified because it will simply be a continuation if you see what i mean. I would really appreciate you clearing that up for me with an example. i think these vids are great, thanks alot.

[Jesus79]

Sorry i made a mistake.. Its not a bull pennant but a bull flag instead..

[Jesus79]

I am seeing a bull pennant starting at the Oct to Dec 2007 during the example of a bear pennant chart. However the it still went into a downtrend. Just like Dave and Brendan had mentioned, it only works when other traders can spot it and making it works.. LOL

[NIGH8R88]

O RLY?

[datatransfers667]

Hi Dave, thanks for the videos!! It seems like you need a lot of imagination to see these patterns though...

[InformedTrades]

Hey DataTransfers, There are times where seeing some of these patterns requires a lot of imagination. One thing about patterns is they only really work well if other traders are viewing the same thing as you. So the more obvious the pattern, in my opinion the more reliable it will be. It is also important to understand there are reasons why certain patterns do or don't work which is all related to supply and demand as well as market psychology.

Hope this helps you out some :)

-Brendan

[datatransfers667]

Thanks! I was wondering how good a pattern would be if I am the only one who sees it. Thanks for ponting out that the more obvious the pattern the more relevant it is. These videos are really helpful!!! Thanks again. =-)

[InformedTrades]

You're welcome. Keep in mind that the whole reason a pattern usually works is because so many people see it that they then are able to "make" it work so to speak.

There are also reasons why the patterns work in the first place relating to supply/demand.

Good luck with your trading :)

-Brendan

[perisss10]

@InformedTrades

awesome videos!

[tippingk]

@datatransfers667 Yep, I'm with you 110% on that. No dis-credit Dave, I just don't see them.

Thanks!

[nathanbelete]

You the best

[FranzJosefHidin]

Thank you for sharing this info! I've been reading a lot in preparation for buying in while the market is down. Your videos are great and I truly appreciate you providing this insight.

PS. What do you think of Jim Cramer's views?

[KevinTheNoobie]

I bought his book "Real Money" on audio cd. It does have very good advice for investing; but not so much for technical trading. As he says on his show he is a fundamentalist. Still worth the read though, but certainly there are better chart based trading books. I do love what he says though, that "No body is going to take better care of your money than a YOU!"

[doodleracing]

Dave, love your work,

Hope you have a great day!

[grygoose1]

Hi DAVE,I'm new to the FX market. Just have 2 questions, does a sotp-loss, protect you from a gap-down or up?. And my second question would be, what software do you recomend, to get started with?

[alia4eva]

the reply might be too late but the most popular sofware is metatrader which is provided by ur broker

[yoroida]

Hi Dave, thanks for the very informative videos. And I got a question.

What if I see a flag which is similar to the one you used for the bull flag (big jump in price followed by consolidation) example, in a downtrend?

[InformedTrades]

Hi yoroida, Thanks for the comment I am glad you are finding the videos informative. If the flag is in a downtrend and is upright then this would still be considered a bull flag, but not as bullish as if it were found in an uptrend. If the flag is situated upside down, then this is a bear flag, and has the same implications as flag found in an uptrend but in reverse (its a bearish pattern). Hope that makes sense. Best Regards, Dave

[jstruble92]

how many periods should you see before you consider the flag to be failed and just sideways movement. What time frame. What time frame is best to see a flag?

[InformedTrades]

Hi Jstruble92, As far as timeframes you can use them on any timeframe however I think most would agree that the longer the timeframe a pattern shows up on the more valid it is considered to be. As far as how long I personally would consider the pattern valid until it broke out in the opposite direction I was expecting, regardless of how much time it took. Best Regards, Dave

[musikicksas]

good stuff

[InformedTrades]

thanks for the comment I am glad you liked it. Best, Dave

[chiadog8888]

Good information, thank you.

[InformedTrades]

Thanks Again for the feedback. If you enjoyed this one there are many more on my youtube channel and site informedtrades . com Best Regards, David