In forex your flag might be inverted rather than running up the pole. It may also appear half mast. It is your job to interpret these forex signals appropriately for profitable results. Flags are one of the more difficult signals out there, so bring your imagination to the table. In fact it is not as easy to see flags as it is to imagine a Y-M-C and A being formed by your arms. The following will examine how to spot them, interpret them and deal with them.
Forex Signals Waving you Down
Flags are found during the range or consolidation period of currency pair trading. It means the support and resistance lines will be a part of designing your flag on a line graph. Price points are also going to remain in these lines rather than breaking out. You will see prices run high and hit the resistance line. This creates the counter downtrend and thus the flag shape will form. You will draw a line for the pole which intersects with the support and resistance to help you pick out the flag forex signals.
It is hard to comprehend this concept just by text alone. You should have a demo account set up which allows you to either draw these lines or draws the lines for you. There are also image examples you can search for through your Australian search engine.
Given the difficulty in finding these particular forex signals you might instead consider a different technical standpoint. You have plenty of different indicators to choose from, so there is no need to stay with something you are unable to recognise. Move on if you are unable to find them on your own after spending more than a few weeks. What you should know about flags is that they indicate a breakout from consolidation that will maintain the prior trend. In other words, consolidation, breakout, and new trend followed the old trend. Luckily for you there are plenty of indicators in the forex market that say the same thing.
Forex Signals Drawing Triples
Triples, in this case triple peaks found on a line graph, are much easier to spot. The downside is that they are usually based on reversals rather than continuation patterns. Forex signals in which the triple peak reaches the prior high might indicate a continuation, but most often it means it is time for a reverse to occur. Most traders predict the high or rate made on the third peak is the highest that pair is going for now, so they begin to sell.
You have other forex signals designed for continuation patterns like flags. Unfortunately many of these other signals are just as complicated to spot like wedges, pennants, and triangles. What you might consider doing is looking for the reversal indicators that are easier to understand like triple peaks. If you do not see triple tops, you can assume a continuation instead of a reversal.
Of course, while you are assuming all this you really need to focus on forex news that can indicate a continuation in trend rather than a reversal.