Our gold pattern continues to tighten up. Now we definitely have the tightening range type of breakout pattern we want to look for on a long side entry in this market. The seasonal tendency favors an upmove as well here.I have bracketed the pattern for those who are not familiar with the flag terminology to see that it resembles a flag when presented like this.
This is a very basic continuation pattern that traders have used for years.
1 comment:
Lisa,
How to actually enter the flag trade is discretionary. Just a simple breakout above the line is how most people do it. Some people like to front run the entry and buy it before it breaks out to get a "better" price.
That is risky as often it can touch the lines on both sides several times and go the other way. Generally, you put a stop below the low of the flag.
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