In a flat, traders lose more often than earn. What is better to do to take advantage of the flat rather than incur losses? As elsewhere in trading, you should not rush, you should wait until the price confidently draws the boundaries of the flat. When a trader sees clear boundaries of a flat, he simply works on a breakout by its price, that is, he waits for the price to exit it. Is it worth working inside the flat from its borders? The fact is that when the price clearly marks the boundaries of a flat, as a rule, it is too late to work inward from its boundaries, since after that there is little time left before its breakdown. Therefore, everyone decides for himself whether to work inside the flat, but it should be borne in mind that this is more dangerous than working to break it down.
What are the forms of flat? It is better for a trader not to start working on a flat breakout. Until he clearly defined it. Simply put, before opening a trade, the trader must clearly know why he is doing it. Flat is a situation when the market does not know where to go, so it is in certain narrow boundaries, which usually precedes a good trend. This means that if a trader has clearly defined the boundaries of a flat, he can earn with a high degree of probability.
Triangle, I think everyone remembers this geometric figure. It is formed on the chart, when the price extremes narrow each time, converging closer and closer, the exit from such a flat is usually very sharp. Let's consider how to determine the moment of opening a trade and the level of take profit and stop when opening it. Trend lines are drawn from narrowing extremes to mark the boundaries of the triangle. A breakout is determined when one of the candles goes further than the previous extremum, a rebound from the channel border in the previous approach, the screenshot shows this level as a green, horizontal line. At this moment, the trader opens a trade in the direction of the breakout, while the stop is placed beyond the opposite border of the triangle. The take profit level is determined by building a parallel channel along the opposite, unbreakable, border of the triangle and one lower point from which the price fell into the triangle. This signal works out in most cases.
The horizontal channel, as you can see from the screenshot, the price is within the clear boundaries of the flat, which is limited by the horizontal line above and below. When a trader determines such a flat, he waits for its breakout, namely, the candle closes outside of it. You just need to wait for the candlestick to close if it closes outside the flat. A trade is opened, the stop is usually placed behind the candlestick that has broken through the border, take profit, in this case, it is better to set at the height of the broken flat. This is the minimum distance that the price travels when exiting such a flat.
Inclined channel. Although this type of channel is more of a trend than a flat, since it has a directional price movement, you can take a profit on its breakout. Therefore, it is worth considering it, as you can see from the screen, there should be clear rebounds from the channel borders, it is worth working for a breakdown against its slope. Then everything is similar to the horizontal channel, the trader waits for the candlestick to close beyond its border, the stop is also placed behind this candlestick, and the profit is at the height of the broken channel.
As you can see, a flat can have clear boundaries and a trader does not open a deal until they are clearly defined. Then, when the price exits them, the market usually moves in a very powerful trend, quickly giving a profit to the trader.