Flags chart pattern

Flags chart pattern

One of the most reliable of all formations is technically
Flags chart pattern or pennant pattern. These models are very similar. Both are formed after a sharp, straight-line move that occurs on heavy volume (either up or down). After this move. Flags chart pattern is formed by a short, choppv consolidation period. This consolidation is bounded by two parallel lines (rectangle). A pennant is formed after a strong move during the brief period of consolidation that re ¬ sembles a small triangle or wedge. Flags chart pattern and pennants are almost always an extension models, and is confirmed when the volume
decreases during consolidation, and then prices broke respec ¬ positive trendlines consolidation of a strong volume (ie, the upper limit line after the move, and the lower boundary line AF ¬ ter down movement). Mon breakout, Flags chart pattern prices should continue moving by an amount equal to the move that was preceded by a short consolidation. In this respect, Flags chart pattern and pennants are said to "fly at half mast. At the beginning of this move is usually a place where prices broke another chart pattern, or breached Flags chart pattern Trendline important support or resistance.