First Look and Setting a Sell Limit
Looking at the current price level and its behaviour, we can easily identify the pole of the flag and the diagonal channel which price constantly rejects.
Price is currently making its way upwards to retest the upper channel. This would be a perfect opportunity to set a sell limit so as to enter the market.
As you can see in the image above I've set a sell limit slightly above where price is and where I predict it will retest before making its way down.
After setting my sell limit, stop loss and take profit levels, I left the order to run its course. My order was set on 10/07/2017 and I took profits on 11/07/2017 for about 58 pips.
If you look at the image closely, you can see that my order did not get filled where I wanted it to which was at the upper channel of the flag. Nevertheless, price broke out, made a double bottom, proceeded to go up where my order got filled and continued its way downwards again to my take profit level.
In a nutshell, this was still a very good flag pattern trade. If you wish to learn more about pattern trading or just trading in general. Do feel free to check out the ElementaryFX website.
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