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