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Karan Flag Pattern Forex Trading Strategy

Amandeep Sonewane | May. 28, 2019
Karan Flag Pattern Forex Trading Strategy

You can now download the Karan Flag Pattern Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Karan Flag Pattern Forex Trading Strategy uses high probability patterns, many traders find it difficult to trade. This is because identifying it is quite difficult to an untrained eye.

The idea behind this strategy is to use moving averages to identify the area which could expect flags and pennants to form after a sudden thrust. To do this, we will be using the 14-period and 50-period Exponential Moving Average (EMA). After a sudden thrust, we will be waiting for the price to retrace to the area between these two moving averages. Then, we will try to identify flag or pennant patterns on it. If we could identify one, then we wait for the breakout and trade accordingly.

We will also be using the 200 EMA to help us identify a trend. This means that price and the other two EMAs should be on the correct side of the 200 EMA. This also means that all three EMAs should be stacked depending on the direction of the trend.

Indicators

  • 14-period EMA (Gold)
  • 50-period EMA (Green)
  • 200-period EMA (Brown)

Timeframe: any

Currency Pair: any

Trading Session: any

How to trade with Karan Flag Pattern Forex Trading Strategy?

Buy (Long) Trade Setup Rules

Entry

  • A bullish price thrust should occur
  • Price should be above the EMAs
  • The EMAs should be stacked in the following order:
    • 14 EMA: top
    • 50 EMA: middle
    • 200 EMA: bottom
  • Wait for price to retrace between the 14 & 50 EMA
  • A flag or pennant pattern should be identifiable
  • Wait for the close of the candle which breaks out of the resistance line
  • Enter a buy market order at the close of the breakout candle

Stop Loss

  • Set the stop loss at the fractal below the entry candle

Take Profit

  • Set the take profit at 2x the risk

Sell (Short) Trade Setup Rules

Entry

  • A bearish price thrust should occur
  • Price should be below the EMAs
  • The EMAs should be stacked in the following order:
    • 200 EMA: top
    • 50 EMA: middle
    • 14 EMA: bottom
  • Wait for price to retrace between the 14 & 50 EMA
  • A flag or pennant pattern should be identifiable
  • Wait for the close of the candle which breaks below the support line
  • Enter a buy market order at the close of the breakdown candle

Stop Loss

  • Set the stop loss at the fractal above the entry candle

Take Profit

  • Set the take profit at 2x the risk

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Karan Flag Pattern Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

 
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.