Reading Price Action - Flag Patterns
Price action represents a series of patterns and signals that offer quality risk to reward potential for entries and exits. Reading Price Action enhances decision-making by identifying the probability of price direction before it emerges. Past behavior, psychology, sentiment, and intuition all play into internalizing the likelihood of price direction.Flag patterns can develop with descending or ascending channels.
Intraday Timeframe Process
- A sharp move away from price
- See it - Flag formation
- Above VWAP = Bullish / Below VWAP = Bearish
- Elevated Volume at the Break
Bull Flags (Intraday)
*Note: In general, Bullish Flag patterns with descending channels ↘️ are more bullish than ascending channels ↗️
Bear Flags (Intraday)
Ascending channel
Daily Timeframe Process
- A sharp move away from price.
- See it - Flag formation
- Above MA = bullish / below MA bearish
- Elevated Volume at the Break