Forex Trading

These products can be traded mostly across three core types of trading accounts. A Markets’ full range of 50 currency pairs is only available on Standard and ECN accounts, however. A multi-asset trading platform is one that allows clients to trade forex and other asset classes, including CFDs on stocks, stock indices, precious metals, and cryptocurrencies as well. Commissions are the charges imposed by an investment broker on a trader for making trades on the trader’s behalf. The level of commissions will vary between different brokers and also depends on the asset being traded and the type of service offered by the broker. These clients can enjoy the unique trading features offered for beginner and professional traders alike, which include trading with higher leverage and a number of possible bonus and promotional offers.

1. LimeFx supports credit/debit cards, cryptocurrencies, ADVcash, and Perfect Money.
2. With its commitment to providing a user-friendly interface, advanced trading tools, and unparalleled customer support, LimeFx has firmly positioned itself as a leader in the digital trading industry.
3. LimeFx offers traders access to the MetaTrader 4 platform, known for its user-friendly interface and comprehensive charting tools.
4. It is still a downside for LimeFx not offering any educational materials, making it harder for beginners to learn how to trade.
5. When traders use margin leveraged accounts, they should maintain a sufficient level of margin to sustain their positions, since trading Forex/CFD and Options on margin carries a high level of risk.

Such leveraged products magnify a trader’s potential profit – but of course, also increase the potential loss. CFD trades on other markets have no commission but do wrap a spread around the market price of a certain instrument. You can trade forex, metals, cryptocurrencies, indices, shares, and several other instruments with LimeFx. No, regardless of payment type, LimeFx does not charge commissions on any deposits. LimeFx offers access to 40 forex pairs, including major, minor, and exotic ones. Over 400+ stocks are accessible for trading, enabling traders to purchase and sell shares of firms, capitalizing on the potential growth and profitability of enterprises in various industries and areas.

Both platforms are available on desktop, web, and mobile platforms, offering flexibility for traders who wish to monitor their trades and the markets on the go. It’s important to note that the specific features can vary depending on the chosen platform, https://limefx.name/ and traders should consider their individual trading needs and preferences when deciding between MT4 and MT5. As previously mentioned, LimeFx offers two of the most popular trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Swap rates on leveraged overnight positions are also competitive, making LimeFx an excellent choice for all trading strategies as long as they select the ECN option. LimeFx is offering new and existing clients to double their deposit.Receive up to $1 … All deposits are free, and LimeFx will compensate you for any commission you pay using your preferred depth method regardless of the amount of the deposited fund.

The initial deposit threshold for an ECN account is pegged at a modest $200. 👉 Nigerian traders can register a demo account with LimeFx, giving them access to virtual funding and a risk-free environment where they can still experience live trading conditions. 👉 LimeFx is an offshore broker that offers internet trading to customers worldwide. LimeFx provides the well-known MetaTrader platforms, a variety of account types, a variety of trading tools, and instructional resources. Many customers have praised the company’s customer service and the range of services it offers.

Is LimeFx regulated and by whom?

In 2018, the company was awarded an e-money license by the Estonian Financial Supervision Authority (EFSA). This license allows LimeFx to offer a range of financial services within the EU’s single market. Additionally, in 2019, LimeFx announced a partnership with MetaQuotes Software Corporation to provide traders with access to its MetaTrader 4 and 5 platforms. LimeFx is an limefx scam online broker that offers a range of services, from trading Forex and CFDs to stocks and futures, with a variety of platforms available. Founded in 2008, LimeFx has since established itself as one of the leading online brokerages, with an impressive array of services and features. The company is based in Estonia and regulated by the Estonian Financial Supervision Authority.

Deposit and Withdrawal Fees

A demo account can be traded without risking real money or having to fund your account. Striving to create an economically conducive trading atmosphere, LimeFx exempts swaps on commodities and indices and has refined swaps for metals, currency pairs, and cryptocurrencies. This refinement results in a 30% saving on swap fees for clients, augmenting their financial latitude. Additionally, the broker facilitates 24/7 cryptocurrency trading via the MetaTrader 4 and MetaTrader 5 platforms.

Customer Service Rating

I rank trading costs among the most defining aspects when evaluating a broker, as they directly impact profitability. LimeFx has two expensive, commission-free cost structures and one competitive, commission-based alternative. The fixed-spread account starts with minimum spreads of 3.0 pips, or $30.00 per 1.0 standard round lot, versus the floating-spread alternative of 1.3 pips or $13.00. Both are expensive, but the commission-based ECN option shows raw spreads from 0.0 pips for a commission of $5.00 per round lot. I like the LimeFx trading fees in the ECN account and multi-tier leverage system. The Forex and cryptocurrency selection stand out from the well-balanced asset selection, and the volume-based cashback rebates are excellent for high-volume and high-frequency traders.

After verification, you may fund your brokerage account and begin trading online. 👉 Monthly audits of LimeFx’ execution quality are conducted by an independent third-party – Verify My Trade – to ensure that we are adhering to the best execution standards. LimeFx is obliged to submit 5000 transactions each month for comparative study against first-tier liquidity providers to keep this accreditation. 🥇 LimeFx does not dominate the forex and CFD market in Nigeria, but the broker is part of the top 100 brokers for Nigerian traders. 👉 This LimeFx review will provide traders with the details that they need to consider whether the broker is suited to their unique trading objectives and needs. LimeFx warns all potential traders that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.

Cryptocurrencies:

LimeFx perpetually positions itself at the forefront of technological evolution, incorporating groundbreaking technologies to facilitate optimal trading conditions. The clientele is endowed with comprehensive tools essential for both independent and algorithmic online trading. The broker integrates modern trading platforms and advanced liquidity aggregation technologies along with STP and ECN mechanisms, offering direct access to the interbank market.

Ludzie pytali również o jej obecną wycenę, która według jednej z osób nadal nie jest “przejrzysta”. Inni dopytywali, czy kiedykolwiek pojawią https://www.tradebot.online/ile-pieniedzy-potrzebujesz-aby-rozpoczac-handel-akcjami/ się obiecane dawno temu udziały kapitałowe lub akcyjne. Według obu obecnych osób, na żadne z tych pytań nie odpowiedziano podczas spotkania.

Jednak nie wszyscy eksperci są nastawieni optymistycznie. W przeszłości nie wszystkie eksperymenty firmy Neuralink na zwierzętach kończyły się sukcesem. Z raportu Reutersa wynika, że podczas badań zginęło nawet 1500 zwierząt, a w niektórych przypadkach testy powodowały „niepotrzebne cierpienie”. Z drugiej strony implanty BCI – jeżeli będą działały poprawnie – mogą być bardzo drogie, co powiększy tylko podziały w społeczeństwie. Pierwsze badania Neuralink na ludziach mają na celu umożliwienie uczestnikom kontrolowania umysłem kursora lub klawiatury komputera. Na razie nie jest znana tożsamość pierwszych pacjentów.

Aplikacja X – inne funkcje

Zapowiadał je wielokrotnie w wywiadach i wpisach na Twitterze. Przyjrzyjmy się zatem, co czeka użytkowników aplikacji X. Finał może być taki, że aplikacja przestanie być dostępna w UE. Business Insider donosił ostatnio, powołując się na głosy z otoczenia Muska, iż miliarder jest sfrustrowany koniecznością przestrzegania unijnego prawa. Chodzi o ustawę o usługach cyfrowych (DSA), która obliguje internetowych gigantów do skutecznego moderowania treści i przejrzystej polityki w tym zakresie. Tymczasem liczne tweety wprowadzają w błąd użytkowników, przybywa informacji, m.in.

1. No i nie zapominajmy o centralnie sterowanym świecie cyfrowym Chin, który jest materiałem na książkę.
2. Cały świat naukowy czeka teraz na efekty badań firmy Neuralink.
3. W efekcie spółka niedawno zaczęła pobierać od nowych użytkowników roczną opłatę.
4. Może być to pierwszy krok w kierunku oferowania pełnych funkcji płatniczych.
5. To dopiero początek zmian, jakie zobaczą użytkownicy aplikacji.

Możliwości wysyłania zdjęć, prowadzenia rozmów głosowych oraz wysyłania wiadomości głosowych, ale także funkcji nietypowych dla komunikatorów, tj. People Nearby, które wyświetla w czasie rzeczywistym mapę użytkowników WeChat w pobliżu czy WeChat Pay – platformę do przetwarzania płatności. Wydarzenia na które warto zwrócić uwagę w przyszłym tygodniu Musk już jakiś czas temu ostrzegał, że Twitter znajduje się w poważnych tarapatach finansowych i w rezultacie może nawet zbankrutować. Ratunkiem miały być masowe zwolnienia, a na bruk trafiło tysiące pracowników. Mimo to firma ma problemy z odpływem użytkowników i reklamodawców.

Rok po przejęciu Twittera Musk ujawnia: X będzie aplikacją randkową

Naszą misją jest walka z fałszywymi informacjami i dezinformacją oraz dostarczanie obywatelom rzetelnych, bezstronnych i sprawdzonych informacji. Najważniejsze święto chrześcijaństwa, upamiętniające męczeńską śmierć i zmartwychwstanie Jezusa Chrystusa, jest w Polsce obchodzone wyjątkowo uroczyście. 24 lutego 2022 roku Rosja rozpoczęła pełnowymiarową inwazję na Ukrainę.

The parties reached a settlement before the appeal was heard, for an undisclosed amount thought to be somewhere under $600,000. He presented expert witnesses to testify that, at 190 degrees F, the coffee would cause third degree burns in just 2 to 7 seconds. In a breach of contract case, the plaintiff must be able to prove that the defendant failed to meet his obligations as defined in the contract. For example, a builder who is hired to build a shed in a family’s backyard, then fails to complete it, has breached the contract he entered into with the family. For example, if a company has had more expenses than revenues for the past three years, it may signal weak financial stability because it has been losing money for those years. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism.

The theory behind liability waivers is that the person acknowledges having been told the activity could be dangerous, and could result in injury, or even death – and then chosen to participate anyway. The goal of the court in any breach of contract case is to make the injured party whole. This may include canceling the contract, and ordering the party that breached the contract to return whatever money or other thing the plaintiff itrader review had paid. The more complex and costly the contract, the more difficult the burden of determining breach of contract liability for the court. AT&T clearly defines its bank debt that is maturing in less than one year under current liabilities. For a company this size, this is often used as operating capital for day-to-day operations rather than funding larger items, which would be better suited using long-term debt.

Many civil liability lawsuits come of damages caused by negligence, or by simply accident. An income statement, also known as a profit and loss account, reflects the company’s expenses and revenues within a particular time frame. Both balance sheet and income statements are types of financial statements. Liability is the money that a business owes a financial institution. Expenses are day-to-day costs a company is expected to pay, such as salaries. A contingent liability is recorded as a current liability on an event of its occurrence.

1. Stella was wearing sweatpants, which quickly absorbed the very hot coffee, holding it against her skin.
2. Examples of liabilities are accounts payable, accrued expenses, wages payable, and taxes payable.
3. These liabilities affect a company’s financial structure because they indicate the amount of debts you have acquired to finance your assets and business operations.
4. The case was based on the theories of product liability, and strict liability.

This is often the case in matters involving minors or those who are mentally incapacitated. Amelia is driving home after picking her two children up from school, when a pickup truck loses control on the wet street, and slams into Amelia’s car. Amelia was driving safely for the weather conditions, and it was Travis, the pickup truck driver, who lost control of his vehicle. Even though it was likely accidental, Travis holds civil liability to pay for Amelia’s damages – both to her car, and to any of its passengers. For instance, a company may take out debt (a liability) in order to expand and grow its business.

The crux of the complaint was that the coffee was “defective,” in that it was excessively hot. The case was based on the theories of product liability, and strict liability. Stella’s attorney offered to settle the lawsuit for $20,000, but McDonald’s refused. Stella was taken to a hospital, where it was determined that she had second- and third-degree burns over her thighs, groin, and buttocks. Her injuries were so severe, she had to have skin grafts during the course of an eight-day hospital stay, then required care in her home for weeks afterward, which was provided by her daughter.

Meaning of liability in English

Liability can also refer to one’s potential damages in a civil lawsuit. Liability may also refer to the legal liability of a business or individual. For example, many businesses take out liability insurance in case a customer Pepperstone Forex Broker or employee sues them for negligence. The outstanding money that the restaurant owes to its wine supplier is considered a liability. In contrast, the wine supplier considers the money it is owed to be an asset.

How Do Liabilities Relate to Assets and Equity?

A liability is a legally binding obligation payable to another entity. Liabilities are incurred in order to fund the ongoing activities of a business. Examples of liabilities are accounts payable, accrued expenses, wages payable, and taxes payable. These obligations are eventually settled through the transfer of cash or other assets to the other party. Limited liability is a business and financial term, which refers to an owner’s or investor’s limited personal responsibility for the business’s debts and other obligations.

How to use liability in a sentence

Current liabilities have lower interest rates in comparison with non-current or long-term liabilities. The long-term nature of non-current liabilities results in high interest rates. This form of liability is less risky as the time of payment is shorter and immediate. It is easier for a company to pay a debt in three months than to meet up with debts extending beyond a year or even more. A liability waiver is a legal document that someone may sign acknowledging that he understands the risks involved in participating in a certain activity. Liability waivers are commonly used in potentially dangerous activities like sky diving, bungee jumping, and even summer camp.

Since most companies do not pay for goods and services as they are acquired, AP is equivalent to a stack of bills waiting to be paid. An expense is the cost of operations that a company incurs to generate revenue. Unlike assets and liabilities, expenses are related to revenue, and both are listed on a company’s income statement. Generally, liability refers to the state of being responsible for something, and this term can refer to any money or service owed to another party. Tax liability, for example, can refer to the property taxes that a homeowner owes to the municipal government or the income tax he owes to the federal government.

Liabilities vs Expenses

This differs from a civil liability case, in which criminal intent is not a factor. In fact, someone can be held civilly liable when their actions were accidental. In a public liability matter, an injured party may hold the person or entity that caused him harm liable for their actions. To win such a lawsuit, the plaintiff (injured party) must prove that the other party (the defendant) did something that directly caused his damages. Such actions do not need to be intentional, in fact, intentional acts that cause harm may carry a harsher penalty.

A liability is an obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses. A liability, like debt, can be an alternative to equity as a source of a company’s financing. Moreover, some liabilities, such as accounts payable or income taxes payable, are essential parts of day-to-day business operations. Examples bitmex review of current liabilities include short-term loans, accounts payable, income taxes payable, dividends payable, accrued expenses, customer deposits, and notes payable. Like most assets, liabilities are carried at cost, not market value, and under generally accepted accounting principle (GAAP) rules can be listed in order of preference as long as they are categorized.

Ben is the Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree. If you have an adjustable-rate loan, check to see if it’s based on Libor. For loans based on Libor, find out what index your lender will be switching to.

1. Since his earnings are subject to LIBOR values and are variable in nature, he wants to switch to fixed-rate interest payments.
2. The key update is the phased discontinuation of Libor following the announcement by the UK’s Financial Conduct Authority (FCA) in 2017, due to declining interbank lending and past manipulation scandals.
3. Banks were relying on central banks for their cash needs instead of each other.
4. With the exception of the 1, 3 and 6 month JPY and GBP LIBOR rates, which will continue to be published for a limited period after December 31, 2021, using a “synthetic” methodology, which has been noted by the U.K.

As the value of LIBOR changes, the interest payment will change. In April 2018, the IBA submitted a new proposal to strengthen the LIBOR calculation methodology. It suggested using a standardized, transaction-based, data-driven, layered method called the Waterfall Methodology for determining LIBOR. According to the Federal Reserve and regulators in the U.K., LIBOR was phased out on June 30, 2023, and replaced by the Secured Overnight Financing Rate (SOFR).

As LIBOR rose to a full point above the fed funds rate, it acted as an extra $3.6 trillion in interest being charged to borrowers. Investors worried this “fear tax” would slow economic growth. Not until the $700 billion bailouts helped reassure banks did LIBOR return to normal levels. In 2017, okcoin review the United Kingdom’s Financial Conduct Authority (FCA) noted LIBOR was increasingly unlikely to be sustainable. The reason is that banks have slowed down lending to each other. As a result, there aren’t enough transactions in some currencies to provide a good estimate of the LIBOR rate.

Libor-based derivatives

The combination of five currencies and seven maturities led to a total of 35 different LIBOR rates calculated and reported each business day. The most commonly quoted rate is the three-month U.S. dollar rate, usually referred to as the current LIBOR rate. LIBOR was an index used by lenders as a basis for setting interest rates on many of their loans.

What is LIBOR?

LIBOR one-week and two-month USD LIBOR rates stopped publishing as of Dec. 31, 2021 as a part of the phase out. The LIBOR index was rocked by a notable scandal in 2008, when it became clear that brokers were influencing the rate. This raised serious issues about LIBOR’s trustworthiness because the brokers’ actions were based on self-interest rather than market fundamentals. LIBOR was the alvexo review subject of a major rate fixing scandal that came to light in 2008, which led to a dramatic administration change. Beginning on January 31, 2014, control of LIBOR was moved from the BBA to the ICE Benchmark Administration (IBA) group, and that group has had control ever since. LIBOR stands for the London Interbank Offered Rate, which is administered by the Intercontinental Exchange (ICE).

What Is LIBOR?

The LIBOR rate rose a bit in late 2011 as investors worried about sovereign debt default due to the eurozone crisis. As recently as 2012, credit was still limefx constrained as banks used excess cash to write down ongoing mortgage foreclosures. Despite LIBOR’s return to normal, banks continued to hoard cash.

It is commonly used by various central banks as a reference in crafting policies affecting interest rates in other countries. Dollar LIBOR benchmark rates—the British pound (GBP), Japanese yen (JPY), Swiss franc (CHF) and euro (EUR)—along with the one-week and two-month USD LIBOR, are no longer published1. The end of these rates is part of the final cessation of LIBOR—and all remaining USD LIBOR rates will be discontinued after June 30, 2023. Libor is being phased out in large part because of the role it played in worsening the 2008 financial crisis, as well as scandals involving Libor manipulation among the rate-setting banks.

For instance, combining a bull flag pattern with an oversold RSI can provide a confirmation signal for entry. Keep an eye on market conditions, and make sure your strategies align with the prevailing market situation. It consists of a flagpole, a sharp price increase, followed by a consolidation in a downward-sloping channel — the flag. Trading this pattern involves understanding the trend line, resistance levels, and market situations. Inversely, a Bull Flag Chart Pattern is a continuation pattern that forms during a correction or consolidation in an uptrend. It is an impulsive move upward that has a strong momentum followed by a downward consolidation in price.

Bull flag and bear flag patterns summed up

In case of a bear flag pattern, traders might also rely on technical analysis and the Relative Strength Index to measure the strength of the bearish trend during the consolidation. The breakout entry point is the moment technical traders are looking for if they want to capitalize on the continuation of the downtrend. This breakout point occurs when the price breaks below the lower trend line. To chart a bear flag pattern, traders should identify a sharp decline in price (the flagpole) and a period of consolidation with a downward-sloping trendline (the flag). Even when a flag pattern is readily apparent, there is no certainty that the price will move in the anticipated direction. This is particularly true in the case of the cryptocurrency market, which is far more volatile and unpredictable than conventional asset markets.

1. Such patterns combine risk management strategies with technical analysis, helping traders use their funds safely and, in some cases, increase their earnings.
2. However, some traders may wish to give it more room to avoid wiggles and place their stop at or under the lower trendline on uptrends and lower trendline on downtrends.
3. The slope of the flag is usually positive, moving higher like a bullish pennant or channel.

When Bull Flags and Bear Flags Patterns Become Invalidated?

The projected measured move was equal to the flagpole height added to the breakout level. After the first retest bull flag was broken, the impulsive trend wave continued the uptrend before entering a new, short-term bull flag. After the breakout from the bull flag, the moving averages have also been broken to the upside and the short-term 10 EMA (red) is back above the longer-term moving averages. When the short-term moving average crosses bullish, it can often foreshadow a trend continuation. A flag pattern can be either be identified as a bear flag or a bull flag, depending on the direction of the prevailing trend. In real life, these chart patterns work great for very active markets that make rapid movments, since these candlestick patterns work best on the short term.

What are bull and bear flag patterns?

Understanding and recognizing bear flag charts can be valuable for traders looking to enter or exit positions in the market. In this guide, we will explore the characteristics of bear flag charts and provide strategies for trading them effectively. A bear flag is a technical analysis pattern that can indicate a potential price reversal in a financial market. It is formed when the price of an asset experiences a sharp decline, called the “pole,” followed by a period of consolidation, which is commonly referred to as the “flag.”

What message does a bull and bear flag convey?

Risk management can also be approached from another direction – by making use of options contracts. Several advanced strategies for trading options, such as bear put spreads, offer a cheap way to profit from drops in price with limited and clearly defined risk. Profit targets should be set by taking the length of the flagpole and tracing it downward from the breakout. When it comes to stop losses, they should be set either at recent swing highs or at the highest point in the “flag” portion of the pattern. If you’re interested, let’s go over everything – from the basics to the fine print and the devil in the details. A similar situation occurred in September 2020, when Ethereum experienced a sudden price drop that formed a bear flag during a period of market uncertainty.

We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Metrics for evaluating performance include accuracy in predictions, warranty of analysis tools, and consideration of market interest and respect for the prevailing market conditions. Combining these patterns with other indicators like RSI can enhance your trading approach. I helped design StocksToTrade to meet the specifications of small-account traders like us. One of my top students, Tim Lento, has over $3 million in trading profits and he mainly shorts stocks.

The pattern is considered to be bullish because the flag suggests that there might be followed by an increase in price. So why is the bull flag pattern important when using technical analysis to trade? Because it can show you where to set your profit target, breakout entry point, and take profit target or exit price. A bull flag signals a potential continuation of an uptrend, while a bear flag signals a potential continuation of a downtrend. The formation, entry points, and price action can vary, but the underlying principles remain consistent.

From stocks to forex trading, understanding real-life examples, support and resistance levels, and the overall trend is vital for successful trading. Disadvantages may include false breakout signals, requiring diligent confirmation and understanding of the overall market trend. Bull flag patterns are a piece of market news every trader should understand. First, the initial impulse must be in the direction of the higher timeframe trend, which is the Flag Pole (A – B). Then wait for an upward Consolidation in a Bearish trend and downward Consolidation in a Bullish trend to play out.

However, more conservative traders may choose to use the difference, measured in price, between the flag’s parallel trend lines. Stop-loss is usually set at or just below the lower trendline of the flag. Bull flag and bear flag patterns are among the most reliable and easy-to-spot technical chart patterns. In this article, we will discuss what bull and bear flag patterns are, how to identify them, and how to use them in your trading strategy.

A trading target from the breakout is often derived by measuring the height of the preceding trend (flagpole) and projecting a proportionate distance from the breakout level. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. ” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity.

To offset some of the risk, lighter shares can be used when trailing the second trendline stop-loss. Upper and lower trendlines are plotted to reflect the parallel diagonal nature. The breakout forms when the upper resistance trend line breaks again as prices surge back towards bear flag vs bull flag the high of the formation and explodes through to trigger another breakout and uptrend move. The sharper the spike on the flagpole, the more powerful the bull flag can be. When the stock broke support below the bear flag pattern, it signaled the continuation was underway.

Even when the formation of a flag pattern is obvious, there is no guarantee that the price will move in the expected direction. This is especially true of the cryptocurrency market, which is much more volatile and unpredictable than traditional asset markets. In technical analysis, bull and bear flag patterns are well-known and easily recognized price patterns. The key difference is that bullish flags signal that an uptrend will continue. Just like with their bearish counterpart, it is important to note that these chart patterns only give reliable signals when they occur during clear trends.

Therefore, they are best used with other analytical methods, risk management strategies, and possibly fundamental analysis to make more informed decisions. Yes, a bull flag is usually considered favorable for traders looking for trading opportunities. The pattern suggests that the price might continue to increase, and such a movement can intrigue traders and encourage them to enter long positions.

A bear flag pattern is basically an upside down version of the bullish flag pattern. It has all the same components, including the flagpole and flag, but the price breaks happen at the lower trend line instead of the upper channel line. Traders of a bear flag might wait for the price to break below the support of the consolidation to find short entry into the market. The breakout suggests the trend which preceded its formation is now being continued. A bull flag pattern consists of a flagpole and a rectangular consolidation, resembling a flag.

Research from industry expert Tom Bulkowski suggests that bear flags lead to an average price decline of 8%. With that in mind, calculating both profit targets and stop losses that combine for a favorable risk-reward ratio shouldn’t prove to be too challenging an equation. Ideally, the initial drop in price should happen on strong volume, while the flag or the consolidation period should be formed with lower or even declining volume. When the RSI is near its oversold level, it is often interpreted as a sign that an asset is undervalued and could soon be heading higher. If this signal is observed at the same time as a bull flag pattern, it can be seen as confirmation of the expected price growth. After a bear flag pattern, if the breakout to the downside is confirmed, it suggests a potential continuation of the existing downtrend.

Once you have selected the relevant trade pair, click on the Indicators button at the top of the chart and a new window will pop up.

Technical traders create trading strategies to ensure they do not surpass their exposure limits or risk more than the equity they have available for each trade. As with other types of indicators, the size of the subsequent trend is the same size as the flag pole leading up to the flag. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion.

So, a bull flag pattern is characterized by an initial sharp rally and then by a period of consolidation. With most bull flag patterns, the volume increases when the pole is being formed, then drops during the period of consolidation. Though the following breakout does not always feature a high surge in volume, an increase in volume can show that there has been an influx of new buyers. By shorting bearish trends, traders may benefit by detecting bearish flag patterns. If a downward move generates the flagpole, a bearish flag is established. When a bear flag’s support is broken, traders may be more certain that the price will continue to move by the length of the pole.

As the new impulsive trend wave loses momentum, the price, once again, goes over into a bull flag during the corrective wave. After the breakout from the first flag, the trend continued higher with a second impulsive trend wave. Elliot wave traders may recognize this trending behavior because it resembles the interplay between impulsive and corrective trend waves. Many traders make the mistake of chasing the price as a bullish trend keeps pushing higher during the impulsive wave. Such a trading approach usually doesn’t perform as well because of a high likelihood of a pullback. Even though a Bear Flag and Bearish Pennant are similar in that they both are continuation patterns to the downside, and they patterns can be formed horizontally.

This consolidation period is also typically slightly longer in duration when compared to that of flag patterns. In a bear flag, a sudden drop in price is followed by a short consolidation period, followed by the price dropping even further. In a bull flag, a large increase in price forms the flagpole, which is followed by a downward-sloping consolidation period, after which further increases in price happen. By combining flag patterns with other technical analysis tools, such as technical indicators, traders can better assess their strength and validity.