All language subtitles for 3. Flag Pattern

Hello, traders, and this session we will be learning about flat pattern, this is the most commonly

found pattern compared to channel pattern and head and shoulders pattern, which we had discussed in

the previous lecture.

And you will find buying and selling opportunities in this pattern all the time.

You can trade with this pattern in all time frame.

OK, so let us start.

Whenever the market is going up 100 hundred percent of the time, there will be a bullish flat pattern.

Likewise, whenever the market is going down, we will for sure find parish flat pattern that too,

in all time frame.

OK.

First, let us discuss about bullish flat pattern.

Traders, first of all, explain the steel withdrawing, then I will show you in the labor market how

this will look.

OK.

When you're working on flat pattern, there are four rules that you need to follow.

Now, let's discuss it one by one.

First of all, the stock has to be in an uptrend like this.

So this is my low.

This is my high Hielo and high uptrends confirmed, right?

So this is my first full second rule, the stock has to create a poll like this.

Third rule, the stock has to create a narrow range like this.

Rule number four, we need to get a break, OK?

And this breakout has to be with volume confirmation.

OK.

Apparently will be at the height of the breakout scandal, Stop-Loss will be at the low of the breakout

candle.

Target, you need to set it like this, you need to start from the high point of the flag to the lowest

point of the flag.

So whatever is the difference, this will be my target.

OK, the highest point of the triangle and the lowest point of the triangle, the difference between

the two, that will be my target.

So these are the rules for this flight pattern.

Now, I'll show you some examples of bullish flight pattern in the lime market so that you can understand

it better.

I will show you some examples on higher timeframe as well as lower timeframe.

OK.

Creators, the first example is Moratti Daily Time-frame.

I mentioned the rules of flight pattern here, so let us start the first rule is the stock has to make

an option, right?

There's my hi, this is my Hielo.

Does my correct.

Rule number two.

There needs to be a poll, we can consider this as a poll.

OK, Thirroul, we need narrow range.

Right.

So if we draw a narrow range like this.

So the stock is in option.

This is a pool and there's the narrow range.

And final rules break out with volume.

This is my breakout.

This breakout is with William.

If you see the volume of the scandal is higher than the previous scandal, right.

Our entry will be a day of today called Candle Stop-Loss at the end of the breakout candle and a target

will be from the highest point to the lowest point of the triangle.

So if I calculate like this.

And Patricia.

This will be my target.

OK, now traders let us in, all of these things are confusing for you.

What we can do them all the drawings, this Malow.

Does my.

This is my Hielo.

And does my high after height, I get a breakout and this breakout is with volume confirmation triggers,

what strategy is this?

This is over type two strategy.

Correct is if you're finding all these patterns confusing, then don't worry about price action strategies

which are have on the same strategies you can use and trading even if you don't know about patterns.

But if you know patterns, you can maximize your profits.

OK, traders know we will see one example for bullish Clapperton on a longer timeframe.

I'm taking Reliance Industry three minutes timeframe, which is suitable for interest rate.

The first rule is the stock has to make an option.

Is my law.

Does my halo.

This is my right rule number one, the stock has to make an uptrend.

So this is an option.

Second rule, we need a full.

We can consider this as a poll a third.

We need narrow range.

See, this became an orange.

And finally, we got a breakout, this breakout is with volume confirmation.

Can you see the volume here?

This volume is higher than the previous volume.

So we have got volume confirmation as well, and we will be at the height of the breakup scandal.

Right, and Stop-Loss will be at the low of the breakout, Kendall, right.

So now tell me, if you are working on intraday, can we give stop loss here?

No, right, we need to give Buffer.

So let's say we give up to this level and taghrid us, but the rule is from highest point to lowest

point.

So on a longer time frame, if I'm giving Bofors so much.

Can I keep as much as target we cannot keep correct, because our other issue is affected because of

this, we will not get good profit if we exit here.

Right.

So what we will do.

We will do all the drawings now low.

Hi.

Hielo.

I the retraced up to this level, at this level, we are getting a breakout.

This breakout, as with volume confirmation, what strategies this this is the type to correct in Type

two strategy, our entry is at the height of the breakout candy store, plus at the low of the breakout

Candy.

And the target can be previous, but relentlessly is an all time high, right?

If the stock is an all time high.

Obviously we will not have privacy, Twinky.

So what we will do, we will take a risk to reward calculator.

We will market entry on a lower timeframe for Stop-Loss.

We need to get a buffer, so we'll keep somewhere here or here, right, if the store closes here.

I cannot keep this as target.

Correct.

Because we will not get properties to reward ratio.

So we will calculate at least one.

One distributor issues so much, but what is the point of trading with one distributor issue?

So we will keep a little bit higher.

So we were I made one point three percent as profit.

This seems like a good are an issue.

So at this level, we will exit the trade if we're not happy with this risk to reward ratio.

Then you have to increase more.

But I will personally stick to this other issue because it's a decent risk to the world.

Right.

Traders now let's see some examples of bearish Clapperton after that, I will let you know what kind

of narrow range we can consider for flat pattern and what kind of narrow range you should not consider.

OK, traders now will discuss about Burish flat pattern.

The bearish flat pattern also has the same food rules.

First of all, the stock has to be in downtrend.

So high, low, low, high and low below.

Second role, there needs to be a pool does the pool.

Rule number three.

That has to be a narrow range.

Rule number four, we need to get a break down with volume confirmation.

And she will be at the law of the breakdown Candy.

Stop-Loss at the height of the Bricktown credit.

Target will be the highest point to the lowest point of the triangle.

Which is this?

Traders, I hope you have understood bearish flat pattern.

Now let's see some examples of bearish flat pattern in the light market.

Trade is a first example for Burish, Clapperton does my high, my does Malaby and does my local right

so the stock isn't done.

That's my first.

Second rule.

We need to have a ball.

So this is the pool.

And this man, Orange.

Finally, we get a break down with William Confirmation.

Does the president handle and does a volume confirmation?

Right, Orangeville, we had a lot of data on Kandal Stop-Loss at the height of the breakdown, and

the target will be from the highest point to the lowest point of the triangle.

So this is the target.

OK, now, if you don't understand this, I would remove this.

As a mother does, my sons, my law, does my law, why does my value and does the trend line at this

level, I'm getting a breakout with volume confirmation.

Does mistyped of strategy.

Target will be.

Previous wind blew, there's my previous wind blew, but if I keep my target at this level, that is

to reward ratio is very bad, right?

So we can keep the search target.

Or we can keep this hashtag.

This is a second type of target, right?

We have already discussed about this with the previous lectures, so this was an example for a higher

timeframe that is on a daily chart.

Now, let us see an example on a lower timeframe as well so that you get a better idea of what this

trade is.

We will take in three minutes time frame as an example to show how to trade with flat pattern on an

intraday.

First of all, high, low, low by.

LOL, OK, second rule, we need a pool.

This is the pool, OK?

Third point, we need a narrow range.

So this became an orange.

Then we go to break down with volume confirmation, you can consider this also as a breakdown or you

can consider the scandal also as a breakdown with volume confirmation.

Would the candle volume is higher than the previous candle, this candle volume is higher than this

and this candle volume is higher than this.

All right, so let's consider this candle itself.

OK.

Our entry will be at the law of the breakdown Kandal Stop-Loss has to be about the Britain Kendall.

Because we are working on a three minute time frame, right?

If we keep this as a stop loss, we cannot keep this land as a target, right.

So what we will do, target will be previous Ringler.

So this is a previous swingler, right?

So this will be a target and again, if you feel these things are confusing.

No problem.

We will just consider high.

Low level, high, low, low retracement, they don't break down with volume and we enter the trade

target previous swing low.

Right, so the flat pattern is nothing but a Type two strategy, if you understand flat pattern, good.

If you don't understand, just follow the type of strategy.

There are some important points you have to know while working on flat pattern.

So let's discuss about it now.

Well, explaining Clapperton to you, you're asking me to let this.

You might be wondering why I'm considering this as a poll and why not this?

The main reason is this pool is too small, so if I draw a narrow range like this.

Have you seen anywhere the people being so small and flat, flag being so big, we see our country flag

right in that the pool is so small and so big.

No, right.

So when the ball is too small and the flag is too big at that time, we need to have a bigger pool.

OK.

So at that time, we can consider this as the pool, but there is one more main point in this.

To consider this as a pool, it has to follow the same trend.

OK, can you see a straight line?

This can be considered as a pool.

Can you see a straight line here?

This can be considered as a bull, OK, but this cannot be considered as a poll way because the movement

of stock is like this and then it went down.

This cannot be considered as a bull.

At the same time, the soldier cannot be considered as a pool because there's is not a straight line.

The stock has made a moment like this and then it's become a straight line, right?

We can consider this as a bull.

We can consider this as a bull.

We can consider this as a bull.

Truth is, I hope you understood how to multiple.

There is one more important point to remember while working with flatbed traders, these are the different

ways narrow range can be found while working on bullish or bearish Clapperton.

When the narrow range in bullish black pattern is formed like this or this or like this, we can consider

that as a narrow range.

But if the narrow range is like no fool, then we should not read.

The same rule applies while working in bearish market.

Three can be considered as a narrow range, but we cannot consider number four.

Now let us understand why we should not consider the type of narrow range.

Narrow range is nothing but consolidation in the market before it makes an uptrend or a downturn in

a bullish flag.

If the narrow range momentos upward, that means that traders are trying to push the market up even

during the consolidation phase.

This is not a good thing.

There are high chances for the market to come down quickly.

Likewise, in the bearish market, if the stock price is going down during the narrow range like this,

that is a high possibility for the market to make a quick up move after the consolidation.

So I suggest you not enter the trade when you see this kind of flat pattern while trading at the same

time.

This does not mean that you can look for buying opportunities when the market is falling or you can

look for selling opportunity when the market is going up.

OK, so please remember this.

These were some of the important points you need to remember while working on flat pattern.

I'll see you in the next lecture.