How To Trade The Bullish Flag Pattern

Thanks to another reader (James) we have this great bullish flag pattern to show you forming on the FXA (Australian Dollar ETF). Bullish flag patterns are great at spotting and predicting major sustained moves in a security. Notice in the example below how it has an initial thrust higher – some consolidation – and then a clean breakout for the next leg up.

Enter FXA. Notice the same area of basing and early consolidation before the initial flag pattern. And just recently we have broken out higher. Not only that – but FXA broke-out into new ALL-TIME highs at the same time! This could be a very powerful trade over the coming months.