Bullish Flag PatternFlag 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 .
Chart Patterns
BULLISH FLAG PATTERN EXPLAINED.Bullish flags are a continuation pattern found in stocks with a strong uptrend. As can be observed, the pattern resembles a flag
on a pole. The vertical rise forms the pole and the following period of consolidation forms the flag. The flag can be a horizontal rectangle
but mostly angles down from the pole. The focus should be more on the underlying psychology of the pattern than the shape. Despite the
strong vertical rally, the stock refuses to drop much because the bulls are buying as many shares they can get their hands on.
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Main characteristics of a flag pattern:
1. The trend before the appearance of the pattern.
2. The channel of consolidation.
3. The volume behavior.
4. The breakout.
5. The confirmation of price movement in the direction of the breakout.
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Target and Volume:
The target for a bull flag is calculated by measuring the length of the flag pole and projecting it from the breakout point. The volume
starts to pick up towards the end of the consolidation range indicating the oncoming breakout. Then there is a huge increase in volume
when the pole is being formed and the volume tapers off during the consolidation period.
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Stop Loss Options:
1. Longer term traders may place their stop loss below the entire flag.
2. A stricter option would be just below the consolidation are before the breakout.
3. The tightest option would be a two bar low trailing stop.
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Thoughts:
No one can know for sure which way the price will move, whether it will continue or reverse. One can follow the action of price,
trade only the best setups and let the probabilities work out. While patterns may give false signals, bullish flags are generally reliable
and effective.
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Alert:
Keep an eye out for price action unravelling currently. Price is pulling back to the 20 EMA, forming a consolidation, a flag of sorts.
A continuation candle near the average with decent volumes could be the sign of a fresh move upwards.
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Will be very grateful for a like and follow. :)
Solid RamcoThis is a beautiful chart if u just watch this chart on a weekly timeframe whereby this has broken the 21 years high of 322. This is now in the blue-sky zone wherein u see the highest traded volume with the highest delivery quantity and also the major reason is a breakout from multiyear levels. This will be the new multibagger stock to buy in.
Always go with any chart and put it in the weekly frame the noise of the market will be reduced and then try to mark the resistance and support levels with horizontal lines. You will get the best out of the chart and then put it in any time frame u will get the same levels of resistance and support.
head and shoulder in cadilac1. head and shoulder pattern formed in cadilahc.
2. this is for education purpose only , please don't take this a call.
3. explained everything clearly in chart.
Banknifty upcoming days support and resistance i am using trend based fib extension in daily chart
if u see Dow theory chart pattern in bank nifty daily chart i am marking level,
trend based fib ex.... wonder tool for upcoming days support and resistance levels,
bank nifty todays fall exactly support 35000 level on (... 23.60...) level on fib golden level support,
if u good for long opportunity on fib 23.60 support level your stop loss below 50 points and strictly maintain your R/R Ratio,
NSE:BANKNIFTY
CUP & HANDLE PATTERN | SUNDARAM CLAYTONA cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u"
A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long.
Bullish Reversal Candle in 3M India3M India is having good support at level of Rs. 24190, stock is reversing at this level, supported by bullish reversal candle, Bullish Engulfing on previous close. Stock gave closing of Rs. 24733.65, can give upside move up to Rs. 27150 in a month, with stop loss of Rs. 23880.
BPCL NEAR SUPPORT TREND LINE- CHANCE TO GO LONGBPCL has been making consistently Higher Highs and Higher Lows and the Bottom Support Trend line is providing good support.
Now after making a Higher High on 9 June the price has been falling and it is near the support trend line at around 440.Now we have to see whether the Support holds and the trend changes. There is also a Bullish Divergence.
Keep a sharp lookout.
How to identify a successful Breakout?Underlying logic:
1. The price gets rejected from a level repeatedly and forms a major resistance.
2. There is an initial test of supply which absorbs some pending orders
3. The price finds a bottom and some sort of accumulation happens.
4. After the accumulation, the price tries to move back up to retest the resistance level.
5. A bull trap is confirmed when the price pierces through the resistance level but there is no follow-up move.
6. But after every test of the supply, it becomes weaker and weaker due to absorption of pending orders(already discussed in older posts)
7. The price finds a bottom again and then another phase of accumulation starts
8. Finally, the price moves up and tries to breakout above the resistance. This time the price manages to break out since the residual supply gets absorbed and it gives a retest.
9. If the breakout is successful, it will be followed by a bullish move and the volume will expand.
10. The retailers buy after the breakout while the institutions buy during the accumulation phase.
Exhibit 1: Clear breakout and clear retest
Exhibit 2: Clear breakout with NO retest of a horizontal level
Exhibit 3: Breakout with consolidation at the resistance level
Sometimes, the price may start consolidating at the resistance level. This is a positive sign because the price is absorbing all the residual supply and is trying to find the equilibrium.
There can be many more different variations, but the underlying concepts remain the same. You can read and revise this post until you master the concepts.
I hope you find this post useful. Also, if anyone is interested in getting a consolidated PDF version of this thread, then you can message me, I'll provide it.
Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk.
Happy learning. Cheers!
@johntradingwick