How to Commodities Trade a Flag Pattern
There are two different types of commodity flag commodity patterns - bullish flag commodity chart pattern and bearish flag commodities trading chart pattern.
To trade these commodity chart patterns a trader requires to learn about the technical analysis of bullish flag commodity chart pattern and bearish flag commodities trading pattern.
Bull Flag Commodities Trading Pattern
This bull flag commodity chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the commodities trading price until the commodities price breaks-out. In general, the bull flag commodities chart pattern will not be perfectly flat but it will be sloping.
The bull flag commodity pattern is found within a Commodities upward trend. In this bull flag commodity pattern is a continuation commodity chart pattern where the commodity market retraces slightly, it is therefore a slight retracement with narrow commodities trading price action that has a slight downwards tilt. The technical buy point is when commodities trading price penetrates the upper line of the bull flag commodity pattern. Flag portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
The bull flag commodity chart pattern occurs at halfway point of a bullish upward commodity trend and after a break-out a similar move equivalent to the height of the flagpole is expected.
Bull Flag Commodities Chart Pattern - How to Commodities Trade a Bull Flag Commodities Trading Chart Pattern in Commodities?
The bull flag commodity chart pattern above was just a resting period as the commodity market gathered strength to break out & move higher. The bull flag commodity chart pattern commodity continuation commodity signal was confirmed as the upper line of this flag chart pattern was broken to the up side.
Bear Flag Commodities Trading Pattern
This bear flag commodity pattern is found in a Commodities downward commodities trend. The bear flag commodity chart pattern is a commodity trend continuation pattern where the commodities trading price retraces slightly with a narrow commodities trading price action that has a slight upward tilt. The technical sell point is when the commodities trading price penetrates the lower line of the inverted bear flag commodity chart pattern. The flag portion of this commodities trading pattern has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
Bear Flag Commodities Chart Pattern - How to Commodities Trade a Bear Flag Commodities Trading Chart Pattern in Commodities?
The bear flag commodity chart pattern above was just a resting period for the commodity market prior to more selling. The continuation commodity signal was confirmed as the lower line of this pattern was broken to the down-side.
