Flag Strategy for Crypto trading

A trader is not born, is done. And although the financial operations in crypto trading are very trustworthy and sure investments even for those who do not have almost economy notions, constant learning is necessary if what is wished is to live of them. The trading is an art, one to which many hours must devote to, effort and learning that is obtained through the experience, be it positive or negative. That’s why the first thing that a trader has to have to come far is the diligence. Not lead yourself by your emotions.

flag strategy for trading revealed

Those emotions , that if followed while we operate, can take us to invest money that we did not have planned to use , with the consequences of losing it for not focusing well on the situation.

Once we have access to the necessary knowledge, it is time to invest time in learning it. No trader is expert in its beginning. In fact, they all coincide that the best thing that they did at the beginning of its their road to success was to read and learn as much as possible. Be it in with the Internet, with books or magazines. .

With them we can learn new strategies that can help us to win in Crypto trading, like the flag strategy. This investment method needs previous learning and therefore it is recommended only to use if we are very experienced in this type of operations.

Of what does the flag strategy consist?

flag strategy stats with handThe flag strategy, is a tactic that requires experience and a good base knowledge because the use of graphs is necessary to be able to put it into practice. It is not recommended for beginners because it can turn out to be complicated, since it is necessary to have a good previous knowledge about the investments. For example, it is necessary to be able to do a market analysis, to read the graphs correctly and to recognize between the tendencies that assets can have in each of the days. For it, at first this strategy can turn out to be difficult to use even on the part of the most experienced traders.

But although he looks like a little to hard at first sight, it only needs a little bit of practice and effort so that quickly we can find the trick to this strategy. Because of that we will see that this strategy simpler than it seems beforehand.

How do we use the flag strategy correctly?

Its modus operandi is very similar to the strategy of the triangle. This is due to the fact that, as the triangle strategy this one is also based on the search and recognition of geometric figures in the graphs, be it for the upward or downward tendency.

For it it is necessary to have also sufficient knowledge to recognize where the roofs and the bottoms are inside the graphic to use it in a correct way. For its suitable use it is necessary to be able to recognize between the breaking points and, basing on this fact, to observe if the drawing of the graph has the form of a flag.

This operation method with crypto trading has two changes, which are very similar, but which are provided with a big difference: that each of them uses in different time frame. This is due to the fact that one is used to be employed at long-term periods like for example 15 minutes and the other in short term periods as the 60 seconds trades.

Of course, independently of the operation time, both changes of the strategy of the flag are always based on the search of the geometric forms that go out marked in the graph.

Flag strategy for ruptures

flag strategy breaktrue chainTo work with this method it is advisable to use short periods of time, like for example 60 seconds and never use it with time frames superior to 5 minutes. It is never recommended to work with bigger intervals because this method is based in making use of the rapid changes that the market can suffer in this moment and use them for our benefit.

The motive of this is that to put it into practice it is necessary to look for these rupture areas, also known as breakouts, where we detect the beginning of the formation of a flag.

After detecting the drawing of this form in the graph and recognizing if the failure has formed in the area of roof or in the area of bottom, it is the moment in which it is necessary to wait to see what will be the tendency that it will have from this point and to hope that it should show a true stability before investing with entire safety.

That's why it is important to have wide notions of the reading of graphs to be able to detect the exact beginning of these breaking points in order to act rapidly, assuring this way the big effectiveness of the strategy of the flag.

Flags strategy with resistances and supports

Or also acquaintance as the strategy of the flag with roofs and floors. In contrast to the previous one, the use of this is always recommended for investments with higher time frames. In fact its is a tactic thought for trades that last a minimum of 15 minutes approximately , although it is more advisable to use it in operations of one hour or longer.

support and resistance for flag strategyThe motive of this is that with the use of resistances and supports one looks is to make use of the stability that shows the market in this moment to be able to do a sure investment.

To use correctly this strategy, we have to be sure that there will not be changes in the tendency, be them to the rise or to the fall, and being able to enjoy and profit from this stability period.

Therefore, as the same as the strategy of flags for ruptures, is important to have wide knowledge on the market in which we are about to invest and to be able to recognize what its tendencies can be after these clear breaking points.

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