distance.
One note about the flags and wedges;
As the price travels between the boundary lines, it happens that the trend line
is not broken and the pattern becomes deeper, or even no more valid. In such a
case cancel the order and place a new one to reflect the current situation.
Sometimes the situation is not going as you had planned and the price breaks
through the other trend line. Then simply cancel the order and forget the
pattern. Rather not taking the trade than taking a bad trade is the key of
successful trading. There will be plenty of other opportunities!
Keep in mind that chart patterns can appear and disappear, or morph into
another patterns. An emerging pattern is not confirmed until the relevant trend
line is broken.
Exercise
First, let's look at the clean chart below. There are several significant highs and
lows that can be connected with a trend line. Before the choppy zone we see a
minor uptrend, so we are going to complete the pattern and place a buy order.
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