TRENDLINES
📌 Introduction to Trendlines in Flags
Trendlines are powerful tools to visualize market structure and confirm continuation patterns like bull flags (for calls) and bear flags (for puts).
Bull Flag → Price makes a strong move up, then consolidates in a downward-sloping channel before breaking out higher.
Bear Flag → Price makes a strong move down, then consolidates in an upward-sloping channel before breaking down lower.
Using trendlines, you connect the highs and lows of the consolidation zone to confirm if the flag is valid.
📈 How to Use Trendlines for Bull Flags
✅ Step 1 – Identify the Pole: Look for a strong move up with long bullish candles. ✅ Step 2 – Draw Downward Trendlines: Connect the lower highs (resistance) and lower lows (support) of the consolidation. ✅ Step 3 – Confirmation:
Price holds above 48 EMA or key support.
Breaks above the downward resistance trendline.
Entry → Calls on breakout retest.
📌 Example from your chart: At 09:00–11:00, price pushed up strongly, then pulled back inside a mini downward channel. Breakout above the red trendline confirmed a bull flag breakout.
📉 How to Use Trendlines for Bear Flags
✅ Step 1 – Identify the Pole: Look for a sharp move down with strong bearish candles. ✅ Step 2 – Draw Upward Trendlines: Connect higher lows (support) and higher highs (resistance) inside the pullback. ✅ Step 3 – Confirmation:
Price rejects resistance (48 EMA / trendline).
Breaks below the upward support trendline.
Entry → Puts on breakdown retest.
📌 Example from your chart: At 07:00–09:00, price dropped fast, then consolidated in a small upward channel. When it broke below the green support trendline, it confirmed a bear flag breakdown.
🔑 Pro Tips (A1TradeHub Rules)
Always wait for trendline break + retest for clean entries.
Stack confirmations: EMA rejection + trendline break = 🔥 high-probability setup.
Scale out profits at major support/resistance zones.
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