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Flagformation

Flag Pattern (Flag and Pole Pattern)A flag pattern is a trend continuation pattern, appropriately named after it’s visual similarity to a flag on a flagpole. Flag patterns can be bullish or bearish. 1. Flagpole: A line extending up from this break to the high of the flag/pennant forms the flagpole. The flagpole is the distance from the first resistance or support break to the high or low of the flag. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level. 2. Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. The price action just needs to be contained within two parallel trend lines. 3. Break: For a bullish flag, a break above resistance signals that the previous advance has resumed. For a bearish flag, a break below support signals that the previous decline has resumed. 4. Volume: Volume should be heavy during the advance or decline that forms the flagpole. Volume contracts during the flag's formation and expands right after the resistance/support breakout. 5. Target: The length of the flagpole can be applied to the resistance break or support break of the flag to estimate the advance or decline.
NSE:PRAJINDEducation
by MandeepSinghKohli
25
Titan forming bullish structureHello guys the last stock adanient nearly hit our intraday targets but we books profit in derivatives instead of cash segment and TCS also made a high of 3705 which is 1.6% above our buying levels in a day and the latest abbotindia is still above our buying price buy not as much profits yet. The next stock that I am bullish on is Titan and it's forming a bullish flag and pole kind of pattern + a bullish pennant too. We can only buy it when it gives a breakout. I can also spot a RSI divergence highlighted by a re line on both the chart and RSI indicator. The runaway gap is also acting as a support and has also been filled so we need not worry about it. MACD is about to come above the signal line. RSI is 47 which I consider as bullish. Buy above - 2360 Targets mentioned in the chart above Please LIKE, COMMENT and SHARE to motivate and support me. I'll keep on posting new ideas on Indices & Stocks. Be sure to follow so that you don't miss any good trades that might have been rewarding. Any comments and critiques will be appreciated even if it's of opposite view as a trader can also be right so many times.
NSE:TITANLong
by this_is_shoaib
7
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!
Education
by Coinlog
3