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Flag Limit – The Most Profitable Forex Search

Pattern
Trade Qualifier
 August 27, 2021 -
 Price Action Trading (https://honeypips.com/category/strategy/price-action-trading/) / Supply
and Demand (https://honeypips.com/category/strategy/supply-and-demand/)

Table of contents
The definition and pattern of the flag limit vary from person to person. That’s why a lot
of di!erent discussions on this forex pattern on the internet make you confused.
Right?

Let’s forget all the concepts you have gathered from various sources like the blog,
YouTube tutorial, or social media. It helps you to understand the profitable pattern
with no doubt.

The flag limit is one of the most successful continuation forex chart patterns in the
pure price action trading strategy. As a price action forex trader, you have to try it.

What is the Flag Limit Forex Pattern?

Simplify Your Trade Decision

The flag limit is the area where the price penetrates the SR flip, forms a narrow Download Now
sideways price action with 1 or 2 candlesticks, and breaks the support or resistance (https://play.google.com/store/app

undoubtedly. s/details?
id=com.honeypips.tradequalifier)

It’s basically a continuation pattern aligned with support or resistance. It strengthens

the support or resistance zone. In short, you need to find out Rally Base Rally (RBR) or
Drop Base Drop (DBD) along with SR flip (Support or Resistance). Recent Posts

Mark the breakout candlestick along with SR flip with a rectangle, as a reference level Trading Terminologies &
Abbreviations with Examples
of supply and demand. The highest Price of this base zone should be called the upper
(https://honeypips.com/trading-
flag limit (UFL) and the lowest price of the base zone is called the Lower Flag limit
terminology/)
(LFL). Wait for the price to return, and it’s time to open positions.
Secrets of Institutional Candle in
Forex Trading – Advanced Concept
I have drawn a flag limit below which helps you to easily understand the concept
(https://honeypips.com/institution
behind the flag limit. al-candle-in-forex/)

Flag Limit – The Most Profitable

Forex Pattern
(https://honeypips.com/flag-limit-
forex-pattern/)

Caping of Price – A Powerful Price

Action Pattern 2024
(https://honeypips.com/price-
action-pattern/)

FTR & FTB: The Most Powerful

Patterns of Forex Trading
(https://honeypips.com/ftr-
trading/)

flag limit

Categories
How Does Flag Limit Work?
Forex Scams
When price comes to a support or resistance level, it forms small consolidation on the (https://honeypips.com/category/f

SR line to push the retail traders in the wrong direction. orex-scams/)

Others
Then the price goes in the opposite direction swiftly, and it captures the retail traders (https://honeypips.com/category/o
with pain. Especially those traders who don’t use a stop loss. Their wrong decision thers/)

point is called the flag limit. Price Action Trading

(https://honeypips.com/category/s
When the price comes back to this point, they close their positions, new traders come, trategy/price-action-trading/)

many traders take their profit, and the price goes in the opposite direction again. Strategy
(https://honeypips.com/category/s
How Do You Trade a Flag Limit? trategy/)
 Go| to
Study in India the chart
Apply Today Supply and Demand
3500+ International Students. 500+ Zimbabwean Students. 50%
(https://honeypips.com/category/s
Spot Fees.
Scholarship on Tuition the trend of the market (Uptrend)
trategy/supply-and-demand/)
Parul University There should be a resistance
Apply Now level

The resistance level should be broken. Thereafter, the price should immediately
cross the resistance line growing down.

This leads to the formation of a flag limit It should have 1 or 2 bearish candles.
The price must create a higher
⌃high thereafter
Mark the zone with rectangles
Place a pending order at the lower flag area.
The price should approach the area with convincing price action.
When the price return to it your order will be triggered
Your stop loss should place above or below the LFL
Target should be at the higher high

The bearish flag limit description will be mirrored.

 Earn $3.5 per
answer

Make money from answering

simple questions. We pay
you in cash. Simple and fun.

You can also execute the trade with the market order by confluence with other price
action patterns or indicators (If you believe these work) to increase the trading odds. A
perfect entry technique (https://honeypips.com/forex-entry-point/) helps you to trade
execution on time.

Supply and demand traders also use the flag limit as a confluence pattern.

Di!erence Between FTR and Flag Limit Pattern

Many traders are confused about the di!erence between the FTR and Flag Limit. Let’s
clarify these two patterns so that you can easily spot them easily in charts.

When the price retraces back after breaking an SR flip, an FTR zone is created. The
core di!erence between FTR and Flag limit is the structure of the pattern. After
breaking a resistance, Bullish FTR creates Drop Base Rally (DBD) with multiple candles.
Similarly, after breaking support, Bearish FTR creates Rally Base Drop (RBD) with
multiple candles.

Whereas, Flag Limit creates Rally Base Rally (RBR) or Drop Base Drop (DBD). The base
forms with 1 or 2 candles in the middle of the SR flip. It creates a tradable opportunity
in the broken resistance and support line.

Di!erence Between Flag Pattern and Flag Limit Pattern

The limit flag is a trend continuation pattern that usually appears in the middle of a
trend. Flag patterns form with poles and flags. This is the core characteristic of it. Pole
is the trending phase and flags are price consolidations after the pole phase.

We can divide the limit flag itself into two types, namely:

1. Bear flag pattern

It appears during a downtrend. Price goes down as (Drop/Pole phase), creates a
sideways market with multiple candles (Base/Flag), and then continuing to decline
again (Drop).

2. Bull flag pattern:

bearish flag pattern

It is the opposite of the bear flag pattern. So bull flag pole appears when the market is
trending up. It creates Rally Base Rally (RBR).

Di!erence

So, flag patterns also create RBR, DBD like the flag limit pattern. But flag patterns
create a flag phase or base with multiple candles. But flag limit crates base with 1 or 2
candlesticks. It’s not mandatory for flag patterns to break any SR flip
(https://www.tradingview.com/ideas/srflip/). But it’s mandatory to break an SR level
for forming the flag limit pattern.

Conclusion
The flag limit pattern tries to identify strong tradable zones where the Buyer/Seller
domination is interchanged. It also helps you to identify a high probable zone where
pending orders from the institutions & market makars are exist.

I have found a YouTube video on this concept. You can view it. I hope, it will be more
helpful to you to understand this important forex pattern.

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› THIS POST HAS 2 COMMENTS

Laplace OCTOBER 26, 2021 REPL Y

Another excellent insight into market movement. I haven’t found such

an interesting site on the net yet.
Keep it up …
Thank you.

Milad Bahrami N O V E M B E R 2 2 , 2 0 21 REPL Y

thank you it was so help full , and i think FL is a kind of FTR

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