Forex chart patterns – Flags
There’s a set of forex chart patterns which suggest continuation – that is, they are against an established trend, which may resume after their completion.
The flag looks like a rectangle directed against the trend, over a period of 5 to 15 candlesticks. Here’s an example in a bear market

The flag pattern is often accompanied by a decrease in trading volume, followed by a increase on resumption of the trend – but bear in mind that this is also likely if and when the whole trend itself is over.
It’s useful to note that the flag pattern may be considered to be part of the trend, so even following the breakout, the price may move in the same range, with similar levels of resistance or support, as before the pattern. Notice also its similarity to the classic model of waves, in Elliot wave theory.
