Post
Topic
Board Trading Discussion
Re: How to use the Bear Flag pattern and what to look for?
by
esinka1903
on 12/07/2023, 13:54:00 UTC
I am trying to learn how to trade with chart patterns myself too...

What I found based on backtesting flag patterns is that they also fail a lot. However, I did manage to get better results by adding some more rules to my strategy like these candlestick patterns - https://www.morpher.com/blog/candlestick-patterns/ - for entry signals. It proved to work much better than I expected.

Also consider other indicators or patterns for extra confirmation to avoid false signals. Understanding all the patterns is definitely not easy, I am still trying to understand how harmonic patterns - https://www.litefinance.org/blog/for-beginners/harmonic-patterns/ - work but it's a bit complicated. I'd say candlestick ones are much more suitable to start with.