The Flag and Pennants MT4 indicator scans and displays flag and pennants chart patterns on the Metatrader 4 trading platform.
Flags and pennants are typically trend continuation chart patterns.
This is an excellent indicator for price action traders. An 100% no lag forex indicator!
How to trade
In an uptrend, open a buy order when the price bar breaks and closes above the resistance line of the flag or pennant chart pattern.
Place a protective stop-loss below the chart pattern.
In a downtrend, open a sell order when the price bar breaks and closes below the support line of the flag or pennant chart pattern.
Place a protective stop-loss above the chart pattern.
The GBP/USD 4-Hour chart below displays the Flag And Pennants Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Flag and Pennants MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy order when the candlestick breaks and closes above the Flag and Pennants chart pattern. Place a stop loss below the low of the chart pattern.
Sell Signal: Initiate sell order when the candlestick breaks and closes below the Flag and Pennants chart pattern. Place a stop loss above the high of the chart pattern.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (channel period, slope period, flag pattern factor, pennant pattern factor) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: flags | pennants
Copy and paste the flag-and-pennant-patterns.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)