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