Flag breakout

Flag Breakout – Universal

Time Frame        : Any, Better with Higher time frames
Currency              : Any
Author                  : Universal

Market Session : Any

Indicators
1. None – Price Action

Buy/Long Rules

1. Price is in an Up Trend
2. Forms a Consolidation area (Figure)
3. Price breaks the consolidation area
4. Wait for a retracement, or a signal candle and Buy (Look Special Notes)

Sell/Short Rules

1. Price is in an Down Trend
2. Forms a Consolidation area (Figure)
3. Price breaks the consolidation area
4. Wait for a retracement, or a signal candle and Sell (Look Special Notes)

Stop loss
Few Pips (depend on the time frame) above/below the highest/lowest point of Consolidation Area

Take Profit
Draw a Fibonacci for highest and lowest points of consolidation area
TP 1 : 200% Fibo Level
TP 2 : 300% Fibo Level

*. Once price reach 150% Fibo level , move SL to Breakeven
*. Once price reach TP 1, move SL to 150% Fibo level

Special Notes
*. Beware of the fake outs, try to avoid them
*. If price come back and touch the consolidation area and continue (Retrace – Fig 02) it is a good indication
*. If a candle pattern such as a Pin bar is formed towards breakout direction(Pin bar – Fig 02 ), it is a good indication

Fig 02 – Retrace and Pin Bar

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