3 Best Flag Trades Now
DAX
The most popular index in Europe, DAX already used the flag in the last week (blue). Back then, formation helped this index to recover after a strong bearish breakout of the horizontal support on 11800 points (yellow). This week also brings us a flag but a much smaller one (green). As we mentioned, this is a trend continuation pattern, so promotes a further upswing.
AUD/USD
A flag was an important aspect of trading for the AUD/USD in the second half of May and beginning of June. As expected, the price broke its lower line. That movement was initiated by the double top formation. Gladly, we warned our traders about such a possibility in one of our earlier reports. The long-term sentiment is very negative.
USD/JPY
In the USD/JPY the price remains in a flag formation for the past two weeks. This pattern promotes the breakout to the downside. Negative approach is strengthened by the fact, that we are close to the mid-term down trendline, which can act as a resistance. Shooting star on the daily chart also can be handy for sellers. The only thing which is stopping from going full bear here is the major, long-term up trendline.