Bitcoin bull flag trading pattern; Recognition and buy setup

Today, I will be covering a continuation trading pattern called a flag. Flag can be bullish and bearish. I will cover only bullish patterns, it works just as well for bear flags as well. Concept explained and history of this pattern will be covered at the end.

What is a flag?

The pattern is exactly how it sounds; it looks like a flag waving. The pole part of the flag is the fast price rise and the flag itself is the consolidation period. (Look at my chart for reference). A bull flag is a continuation pattern where the price stalls and consolidates briefly before continuing to rise further.

Starting a trading system? Here is some basic backtested bitcoin statistics.

Fellow bitcoiners:

Today, I will be covering a post on basic statistics about bitcoin performance. Historical bitcoin price is a good starting point for building your own system. It’s kind of like knowing the historical return for the stock market (8%). The expectation is that your system need to outperform this number. So today, I will be covering a few statistics including percentage of green/red day, average daily gain for green/red. More advanced stuff, expectancy, profit/loss ratio and so forth.

Backtest specs: