Strategy for binary options, Forex and CFD - Flag Pattern Trading

Strategy for binary options, Forex and CFD - Flag Pattern Trading - a strategy for trading on a 1-hour time frame, based on moving averages and a breakout of the trend line, used to find entry points into a trade.

Minimum Time Frame and expiration time

• Time Frame: H1
• Expiration time: 3 hours (3 candles)

Recommended Time Frame and Expiration Time

• Time Frame: H1
• Expiration time: 4 hours (4 candles)

Indicators of the Flag Pattern Trading strategy

• flag_and_pennant

Risk management

Trade is carried out with a fixed amount not exceeding 5% of the trade balance. You should not trade during the release of important economic news.

Flag Pattern Trading strategy: signal to increase

• The price is above the red line
• The price broke and closed above the blue or green downward sloping band
• Enter when the next candle opens

Flag Pattern Trading Strategy: downward signal

• The price is below the red line
• The price broke through and closed under the blue or green band sloping upward
• Enter when the next candle opens

Trading on Forex and CFD

• Before starting trading, it is recommended to test the strategy on a demo account (open at least 3-5 trades)
• The trade is opened after receiving a signal from the trading strategy
• The ratio of Take Profit to Stop Loss should be 3:1 (for one unit of possible loss there should be 3 units of potential profit)
• The time frame of trading is not important - minute charts are suitable for scalping, hourly or daily charts are suitable for long-term trading
• Take Profit to Stop Loss levels are set depending on the selected time frame
• The strategy will show false signals on minute charts during the release of important economic news - trade on higher time frames or choose a different time for trading