Entry: Even though flags suggest a continuation of the current trend, it is prudent to wait for the initial breakout to avoid a false signal. Traders typically expect to enter a flag on the day after the price has broken and closed above (long position) the upper parallel . In a , the day after the price has closed below (short position) the lower parallel .
Stop Loss: Traders typically expect to use the opposite side the as a stop-loss point.
Profit Target: Conservative traders may want to use the difference, measured in price, between the flag pattern’s parallel to set a profit target.
Disclaimer: All charts are purely for educational and information purpose only. Invest or Trade at your own risk.