FL (Flag Limit) Sample in audusd 30min chart
What is the Flag Limit Forex Pattern?
The flag limit is the area where the price penetrates the SR flip, forms a narrow sideways price action with 1 or 2 candlesticks, and breaks the support or resistance undoubtedly.
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).
Mark the breakout candlestick along with SR flip with a rectangle, as a reference level of supply and demand. The highest Price of this base zone should be called the upper flag limit (UFL) and the lowest price of the base zone is called the Lower Flag limit (LFL). Wait for the price to return, and it’s time to open positions.
