What is Bullish Flag Pattern?What is a Bullish Flag Pattern?
The bullish Flag pattern is usually found in assets with a strong uptrend. It is called a flag pattern because it resembles a flag and pole. Pole is the preceding uptrend where the flag represents the consolidation of the uptrend.
How does Bullish Flag Pattern?
The flag pattern resembles a parallelogram or rectangle marked by two parallel trendlines that tend to slope against the preceding trend.
Phase 1: Preceding Uptrend
When there is an extreme demand in prices there is an uptrend. It continued as the demand increases.
Phase 2: Flag
After the sharp uptrend when supply increases more then the demand prices move to the consolidation phase or flag phase. This acts as a small price channel.
Phase 3: Uptrend Continuation
As the flag is a pause in an uptrend, as prices consolidate investors again start to show interest in the asset which eventually leads to heavy demand again which further leads to a breakout and uptrend continuation.
Role of Volume:
Volume plays a vital role in the completion of the Bullish Flag pattern. When in a preceding uptrend the volume is quite higher. In the flag phase, the volume starts to go down as investors are least interested to buy and sell that particular asset. And again on the breakout, the volume surges. Volume with Breakout gives a good indication of a successful uptrend.
Above Chart Explanation:
This is 4H chart of SOLUSDT We can see a good preceding uptrend with great volumes. Then after the uptrend, we enter the second phase the flag phase we can see perfect bounce and retracement from upper and lower trendlines or flag with diminishing volumes. And again a breakout with good volumes.
Here could be the two possible entries one at the bottom of the flag that gives us a very low-risk entry if it breaks the flag we exit.
And second entry can be at breakout, first, we have to confirm that the breakout is legit for that we can look at the volumes rising volumes to confirm that the breakout is legit.
Usually, we should target the length of the pole after the breakout.
Conclusion:
Bullish Flag is a continuation pattern it occurs quite often on charts and is one of the most reliable continuation patterns.
Comment your thoughts on Bullish Flag Pattern in the comment section below.
Disclaimer:
This is just an educational post never trade just any pattern. And please do your research before making any trades.
PS: We are again publishing this for our Indian Audience
Happy Trading!
Flagbullish
Banknifty 9 August Hourly ViewHi Traders,
In hourly time frame, I can see 2 patterns:
1. Flag Pole
2. Symmetrical triangle.
For both the patterns, following would be the targets:
1. Break-Out i.e Bullish - 1st Target : 36000
2nd Target : 36200
2. Break-Down i.e Bearish - 1st Target : 35700
2nd Target : 35500
Please comment below what do you feel.
VIMTALABS #StockMarket #StockIdeas #StocktoWatch #StockToBuyVIMTALABS ENGAGED IN THE BUSINESS OF LEADING CONTRACT RESEARCH & TESTING SERVICES.
WITH MARKETCAP OF 715CR
STOCK P/E 22.9
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STOCK SHOWN GOOD ROUNDING BOTTOM BREAKOUT & THEN CONSOLIDATION
AND AGAIN BREAKOUT
RECENT BULLISH FLAG BREAKOUT CAN BE SEEN WITH RETRACEMENT AND SUPPORT FROM 20MA AT PRICE OF 323
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GOOD ENTRY AROUND LEVEL ABOVE 320-325
FOR TARGET OF MINIMUM 370--390++
WITH SL 300 OR 20MA SUPPORT ON DAILY BASIS.
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STRICT SL TO BE FOLLOWED IN EVERY TRADE
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SPARC : Flag & Pole with high volumeSPARC :
-Filtered in strategy#2
-Good Volume
-Flag&pole pattern
- Ready for BO.
- Good R:R:
-Holding may be 6 month
Like, Share, Comment for regular updates.
Disclaimer
I am not sebi registered analyst
My studies are Educational purpose only
Please consult with your Financial advisor before trading or investing
IGl has Created Both Flag & pole + Rounding bottom patternHi guys ... As shown in the chart IGL has formed both Flag and pole + Rounding Bottom Pattern and it looks good only above 578- 580
Targets can be the 100% of the depth of the rounding bottom pattern and Target 2 will be 100% of the length of the pole ..
-- Things to remember
--- Breakout should be done with Good volumes
--- Once breakout done .. it can come back to retest the support which was once resistance ...
-- Please wait for the confirmation ... so for being Safe side buy 1-2 points above the mentioned levels
- Note : I am still a learner ... Do let me know if i miss something
- Disclaimer : - This is Just for Education purpose only
Trident - Expecting more than 20% returns in short span
🔴DISCLAIMER
***** It's just for an educational purpose and so you must also follow your own technical analysis before taking up the trade ******
Aggressive traders enter at the breakout and conservative traders may give entry after retracement (Retracement is optional, we cannot expect every stock to take a retest after the breakout, it may also continue to have its bullish pressure after the breakout)
After reaching our targets, trail your stop loss to get maximum profit from the stock in a single trade
HFCL - Rectangular Flag and Pole breakout
Entry - CMP (72.6) breakout was 67.85
Target1: 86.1
Stop Loss: 63.7 (Daily Close).
Will Update Trailing Stop loss whenever required.
Duration: 1-2 months
2nd Time Sharing this Script since it went well last time and hoping it to go well this time too, since Script has shown Slightly Stronger Technical Pattern this time. (Rectangular Flag and Pole)
Technical Stock is showing Rectangular Flag and Pole breakout with increased Volume .
Fundamentally Script is trading around Fair to Slightly Higher Valuation but since we are in bull market we can expect Over valuation of low Debt companies too.
Previous View
Disc. : Views Shared for Education Purpose only. Consult your Financial Advisor before taking any position.
Please like Share and Comment if you like our work.
Please do your Risk and Portfolio Management Properly.
NLC India - Flag pattern, Bullish formationNLC India is in a flag pattern with a consolidation zone, so give an entry with appropriate Stop loss after the breakout from the zone
🔴DISCLAIMER
***** It's just for an educational purpose and so you must also follow your own technical analysis before taking up the trade ******
Aggressive traders enter at the breakout and conservative traders may give entry after retracement (Retracement is optional, we cannot expect every stock to take a retest after the breakout, it may also continue to have its bullish pressure after the breakout)
After reaching our targets, trail your stop loss to get maximum profit from the stock in a single trade
Muthoot Finance - Flag PatternMuthoot finance is in flag pattern with consolidation zone, so give an entry with appropriate Stop loss after the breakout from the zone
🔴DISCLAIMER
***** It's just for an educational purpose and so you must also follow your own technical analysis before taking up the trade ******
Aggressive traders enter at the breakout and conservative traders may give entry after retracement (Retracement is optional, we cannot expect every stock to take a retest after the breakout, it may also continue to have its bullish pressure after the breakout)
After reaching our targets, trail your stop loss to get maximum profit from the stock in a single trade
Can Reliance follow through after the flag breakout?NSE:RELIANCE has broken out of the flag pattern with above average volumes, but faces some weakness in crossing the 2220-2250 level, as is evident by the price action recently. With the AGM tomorrow, could RIL sustainably follow through after the flag breakout?
We've seen at least one flag breakout in the recent past (not pictured here) after which the broader rally resumed in full-swing. Could this be the start of something similar to that?
And in the past, AGMs have shown us a breakout or breakdown from the consolidation phase. So tomorrow seems to be a very important day for the Big Daddy of the Indian markets, and consequently, for us traders as sentiments spread and it is the highest weighted stock in Nifty.
What are your thoughts?
HFCL - Flag and Pole breakout
Entry - CMP (51.15) breakout was 47.3
Target1: 71.2
Stop Loss : 47.5 (Weekly Close). Deep SL 42.15
Will Update Trailing Stop loss whenever required.
Duration : 1-2 months
Technical trade Stock is showing Flag and Pole breakout with increased Volume.
Fundamentally Script is trading around Fair Valuation but since we are in bull market we can expect over valuation of low Debt companies too.
Disc. : Views Shared for Education Purpose only. Consult your Financial Advisor before taking any position.
Please like Share and Comment if you like our work.
IRCTC getting ready for a ballistic move upsideNSE:IRCTC
Irctc is getting ready for a ballistic move upside.
flag and pole breakout in 1 hr chart and again forming flag and pole in smaller time frame.
stock currently at a good value area. if it moves above 2115 after a gap up open I will add for positional trade with SL at 2071
Stock has the potential to go till 2300 in the short term.
2182 will be the target 1
observe HH HL formation in 5min chart after the gap up open.
If it does not open gap up the plan will be updated as per price action
Birlasoft VCP breakout showing strengthBirlaSoft reacted strongly from its rising 200ma & went up to closed above 20 & 50 sma on Friday.
It forming a very inviting long tail candle. The volume though was marginally (@25%) higher wrt its 10day average.
On Monday, it gapped up strongly and now today's close seems to be sustaining well. Waiting to see how the coming weeks shape up.
Planned GTT entries triggered on Monday morning, but did not execute due to gap up. Min quantity entry taken at 298 levels.
Kolte Patil Flag Breakout and Inverse Head and Shoulders patternThis has Perfect Flag breakout and Inverse head and shoulders pattern getting formed.
Inverse head and shoulders pattern are usually seen at bottom of the trend and are strong.
Long near 250 SL 205 target 400-500 and beyond
DISCLAIMER:There is no guarantee of profits or no exceptions from losses. The study provided is solely the personal views of my research. You are advised to rely on your judgment while investing/Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. Seek help of your financial advisors before investing/trading.
I may or may not trade this analysis
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PNC InfratechFlag and pole pattern breakout!
Looks good to buy with targets marked in the chart. Set stop-loss according to your risk appetite.
Also, MACD further supports the breakout.
Please do your own analysis before making any decisions and also let me know if I missed something.
Let's learn together.
NIFTY DIWALI TARGET 19000On a weekly chart there is a flag and pole pattern forming from 11500 making a high around 15400 and then there was a sideways range from Mar to May mid. On a break out of 15000 around mid may it has opened a window to 19000 as previous pole measured is around 4000 (15400-11500). Target of 19000 should touch around October-November i.e Diwali time. Stop loss for this setup will be around 14500. However, only time will tell if this theory will come true or not. Keep stop losses intact and hedge on any of the trades taken on this setup or even any setup. But Nifty has turned bullish and this is one of the best time to turn bullish.
Trade as per the risk appetite, Spreads are much better to trade as risk is defined
Disclaimer - This post is for educational purpose only. Please consult your financial advisor before taking any position.