Flag formations are trend continuation patterns. Their formation indicates that an ongoing trend will continue to exist for some more time, provided that the pattern is confirmed and triggered. These formations must be preceded by a sharp move in the ongoing trend and sloping against this preceding trend.

Part of our multimedia library, learn in this video what is a flag formation in Forex and how to use this chart pattern on your trading strategy.

Learn MorePrice charts are used to track an asset's current prices and for technical analysis of a pair’s price movement. If you would like to know more about the different types of charts used in Forex trading to plot the price action of an assetr over time, please read our complete article Which are the Types of Charts in Forex Trading.