SUI

2 days ago

The flagpole is a crucial part of the flag pattern in technical analysis. It represents a sharp move in price, either up or down, followed by a consolidation phase that forms the "flag" part of the pattern1. Here's a quick breakdown:

Flagpole: This is the initial sharp move in price. For a bullish flag, it's an upward move; for a bearish flag, it's a downward move1.

Flag: After the flagpole, the price moves sideways in a more narrow range, forming the flag. This consolidation phase is where buyers or sellers take a breather before the next move.

Breakout: The breakout occurs when the price moves out of the flag in the direction of the initial flagpole move.