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.
With price action you analyze the price itself rather than watching indicators and fibonacci levels. The candlesticks on the chart are actual buy and sell orders on the forex market. We believe it is more beneficial to analyze the orders instead of some magic numbers generated by indicators.