Flag Pattern is one of the most popular chart patterns, formed by price action, which is contained within a small rectangle or a channel in the shape of a flag. Flags are short-term continuation patterns that mark a small consolidation before the previous move resumes.
A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move. Usually a breakout from the flag is in the form of continuation of the prior trend. Flags give very relatively small risk and high and quick profits.
# What is Bullish Flag Pattern?
When the prices are in an uptrend a bullish flag pattern shows a slow consolidation lower after an aggressive uptrend. This indicates that there is more buying pressure moving the prices up than down and indicates that the momentum will continue in an uptrend. Traders wait for the price to break above the resistance of the consolidation after this pattern is formed to enter into the market.
# Trading with Bullish Flag Pattern ?
Traders can enter into a trade when the price breaks above the upper trend lines. It is formed when there is an increase in the demand that makes the prices to move up .When the demand is more than supply, price breaks outside the flag above the resistance and prices continue to move upwards.
# Duration:
Flags are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
# Volume:
Volume should be heavy during the breakout of flag upper boundary .
#Stop Loss:
A stop-loss can be placed outside the flag on the opposite side of the breakout.
Kindly Let us Know if you have any question .
A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move. Usually a breakout from the flag is in the form of continuation of the prior trend. Flags give very relatively small risk and high and quick profits.
# What is Bullish Flag Pattern?
When the prices are in an uptrend a bullish flag pattern shows a slow consolidation lower after an aggressive uptrend. This indicates that there is more buying pressure moving the prices up than down and indicates that the momentum will continue in an uptrend. Traders wait for the price to break above the resistance of the consolidation after this pattern is formed to enter into the market.
# Trading with Bullish Flag Pattern ?
Traders can enter into a trade when the price breaks above the upper trend lines. It is formed when there is an increase in the demand that makes the prices to move up .When the demand is more than supply, price breaks outside the flag above the resistance and prices continue to move upwards.
# Duration:
Flags are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
# Volume:
Volume should be heavy during the breakout of flag upper boundary .
#Stop Loss:
A stop-loss can be placed outside the flag on the opposite side of the breakout.
Kindly Let us Know if you have any question .