FLAG & POLE (INDIGO) WITH AWE$OME VOLUME

Sep 28

The flag and pole pattern is a continuation pattern that indicates a strong trend in the market. Here’s a detailed look at how it works:

Flag and Pole Pattern
Pole: This is the initial sharp price movement in the direction of the trend, either upward (bullish) or downward (bearish).
Flag: Following the pole, the price consolidates in a small, rectangular or parallelogram-shaped range that slopes against the prevailing trend.
Breakout
Bullish Flag: The price breaks out above the upper boundary of the flag, continuing the upward trend.
Bearish Flag: The price breaks out below the lower boundary of the flag, continuing the downward trend.
Trading the Breakout
Identify the Pattern: Look for a strong price movement (pole) followed by a consolidation phase (flag).
Wait for the Breakout: Monitor for a breakout above the flag’s upper boundary (bullish) or below the flag’s lower boundary (bearish).
Enter the Trade: Enter a long position on a bullish breakout or a short position on a bearish breakout.
Set Stop-Loss and Take-Profit Levels: Place a stop-loss below the flag for a bullish trade or above it for a bearish trade. Set your take-profit level based on the height of the pole.