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The flag or pennant chart pattern is formed right after a bullish or bearish price movement followed by a period of consolidation. The following chart shows the bullish and bearish flag patterns along with how they are traded Pennant price starts to consolidate and move gradually pennant, look to buy on the break out of the flag. The price objective is expected to be the minimum previous distance of the flag post from the break out price level. The Figure 2 shows an example of a forex flag trade example Figure 2 above shows a bullish flag example.
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