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The Elliott Wave theory is one of the most popular subjects in trading and many traders claim that it actually works, so you better pay attention to this lesson. As a forex trader, you obviously want to know when to enter and when to exit the market. Mr. Elliott’s theory might give you some clues.

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The flag patterns are continuation patterns, which means the price enters a brief consolidation period before it continues in the trend direction. Traders would expect to recognize bullish flags on up trends and bearish flags on down trends.

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