The study helps identify the Flag pattern on the charts. The criteria of the flag shape that are said to improve the performance of the pattern were described in an article. The base for the strategy is formed by those criteria.

The study searches for flags whose parameters conform to the following.

• The flag pole height is at least 5.5times the average true range (ATR) and its formation takes no longer than 23 bars;
• The flag itself is not wider than 2.5 times the ATR and its formation takes no longer than 15 bars;
• There is an uptrend before the flag formation and it persists for at least 70 bars;
• The ATR has changed by at least 5%during the flag formation.

There are input parameters.

• max flag length The maximum number of bars since the pole top.
• max flag height The maximum flag width, expressed in ATRs.
• max pole length The maximum duration of the pole formation, in bars.
• min pole height The minimum pole length (bottom-to-top),expressed in ATRs.
• up trend length The minimum duration of the preceding up trend, in bars.
• min atr percent change The minimum ATR percent change during the formation.

Works with all futures, currency pairs, and stocks.

Works with the Think Or Swim trading platform.

You will never be on the wrong side of a trade again if you use this indicator.