I believe this pattern is called the flag, and is categorized as a continuation pattern. In other words, it is confirmation that price is in a retracement, and that likely, the trend is intact.
So I have a bullish flag on the chart, I will be looking to buy when price breaks out of the resistance trendline as seen in the previous 2 similar setups.
Side note: flags and channels that are continuation patterns can be found on the 5 and 15 minute charts as continuations of a trend on the 1h, or 4h - like the 4h can be used to find continuation patterns of a trend on the 1d.
Longer time frames, however, are much more reliable and provide traders with more pips per position.
So I have a bullish flag on the chart, I will be looking to buy when price breaks out of the resistance trendline as seen in the previous 2 similar setups.
Side note: flags and channels that are continuation patterns can be found on the 5 and 15 minute charts as continuations of a trend on the 1h, or 4h - like the 4h can be used to find continuation patterns of a trend on the 1d.
Longer time frames, however, are much more reliable and provide traders with more pips per position.
