Flags are usually preceded by a sharp advance or decline. The flag looks like a rectangle directed against the prevailing trend:
The formation of this pattern is accompanied by a decrease in volume followed by a sharp increase after the breakout. The formation takes from 5 to 15 bars. The pattern is considered to be in the middle of the trend, so after the breakout the price may move the same range as it had moved before the pattern.
Trading contest live at the London Investor Show FOREX 24 February 2012
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