Stage 1: Price trends sharply upward forming the “flag pole.” This rise should happen in less than 2 months.
Stage 2: A consolidation pattern forms after the rapid rise higher. It can look like a flag or pennant, as long as there is a pause in the price rise.
Stage 3: Price breaks out. The pattern is confirmed once the stock or commodity closes above the highest peak in the pattern.
Stage 2: A consolidation pattern forms after the rapid rise higher. It can look like a flag or pennant, as long as there is a pause in the price rise.
Stage 3: Price breaks out. The pattern is confirmed once the stock or commodity closes above the highest peak in the pattern.