## Flag Patterns in Cryptocurrency Trading: Detection and Trading Strategies
Experienced crypto traders have long noticed a pattern: when the market is preparing for a significant price movement, a special structure often forms beforehand. This structure is called a "flag" — one of the most reliable technical analysis tools for predicting trend direction and identifying optimal entry points with minimized risk.
## Mechanics of the Flag Pattern: How It Works
The flag pattern consists of two components: a sharp price movement (flagpole) and a subsequent consolidation period (the flag itself).
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View OriginalExperienced crypto traders have long noticed a pattern: when the market is preparing for a significant price movement, a special structure often forms beforehand. This structure is called a "flag" — one of the most reliable technical analysis tools for predicting trend direction and identifying optimal entry points with minimized risk.
## Mechanics of the Flag Pattern: How It Works
The flag pattern consists of two components: a sharp price movement (flagpole) and a subsequent consolidation period (the flag itself).
**