Flag Pattern Trading Strategy
It is possible to trade Binary Options both with indicators and without them, the second variant can also bring very good income. What is a Flag model? It refers to the trend continuation patterns and suggests that the current trend will continue after the correction. It is easy enough to find such Flag on the chart. Let's take a look at the screenshot. It’s clear from the graph that the price makes so-called correction after going upward (the correction range is indicated by two parallel lines). This correction is called a Flag. The price of the underlying asset makes false reversal and then the trend which was formed before the correction continues. How to trade with the Flag Pattern Strategy? First of all a trader needs to outline its boundaries through the support and resistance lines (based on levels). When the price is inside this model it is recommended to refrain from trading. You can buy the Up-option after an upward price breakout of the pattern. After that the trend usually continues to reach new highs.
Also there is a Flag Pattern for down-trend markets. In this case, the model will be an upward correction to the down-trend (i.e. the picture will be the complete opposite of what you can see in the screenshot). Accordingly, after the appearance of such a model, the market is likely to continue to decline after the development of the model (after the support (bottom) line breakout of the underlying asset’s price). You can buy the Down-option.