Implement many effective strategy on Forex is not that complicated. Use pattern "Flag" - this is the case. This figure appears in the chart currency often enough, but clear guidance on the use of this chart pattern is extremely difficult to find. Along with this one of the most efficient and effective trading strategies is associated with a "flag."
In most cases, this figure appears after a sharp jump in graphics or continued motion, and is kind of course correction, after which the dominant trend resumes movement.
Use this pattern to their advantage as follows. Find the chart traded currency pairs sharp move and wait for consolidation. In no case do not enter the market when the first rollback! Be sure to wait for the formation of a "flag."
Soon will start to appear on the chart wave - bringing the total to be three, mark peaks peaks letters ABC. The best time to enter the market for this strategy will be the close of the formation of the third wave (C) - The order is placed in the direction of the dominant trend.
However, the presence of three waves on the chart should not be taken as a guarantee of 100% success of the future transaction. The most effective trading strategies need to be confirmed by a special input signals. These may include Fibonacci levels , resistance and support lines , divergence or moving averages .
After determining the basic direction of the schedule and availability of its points A and B must draw a line across the top and a point in a line parallel to the direction of the dominant trend, a similar line of conduct through the point A. Thus the channel is formed at the boundary of which is expected to appear in the area of the point where need to put a limit order.
Do not forget the stop loss. In this situation, it would be more appropriate to place on the next Fibonacci level. Example. If the point C is found to be 40%, the "stop" must be put at 50% level. A must for this strategy is the setting and take-profit. The optimal place to capture profits last high or low graphics.
Unfortunately, the work in the currency market is a risky activity. In practice, many traders, many situations in which the price is below the delivered orders with just a few points. In this situation, should have the courage to close the deal on the current market price, the formation of a topping bar. Also, do not use a pattern "Flag" at small intervals - in such circumstances to obtain false signals is most likely.