Trend Continuation Pattern
Bullish Flag Chart Pattern: Tata Chemicals
Description:
The flag represents a brief pause in a dynamic market move & one of the requirements for a flag pattern is that it should proceed by a sharp and almost straight-line move.
It represents situations where a step advance or decline has gotten ahead of itself, and where the market pauses briefly to "catch its breath" before running off again in the same direction.
Construction of Flag & Pole pattern:
The flag resembles a parallelogram or rectangle market by two parallel trendlines that tend to slope against the prevailing trend.
The flag usually occurs after a sharp move & represents a brief pause in the trend.
The flag should slope against the trend. Volume should dry up during the formation & built again on the breakout.
How to trade flag and pole patterns:
The sideways period is often followed by another sharp rise. This is where the trading opportunity comes in. Once the flag pole and a flag or have formed, traders watch for the price to breakout above the upper flag/trend line. When this occurs, enter a long trade.
Conclusion:
1-Flag patterns are a commonly used technical analysis tool and majorly a choice of breakout traders and swing traders.
2- Flag is formed when there is a minor profit booking in either an uptrend or a downtrend.
3- The pole is formed by a line that represents the primary trend in the market.
4- It is important that flags are preceded by a sharp advance or decline.
Description:
The flag represents a brief pause in a dynamic market move & one of the requirements for a flag pattern is that it should proceed by a sharp and almost straight-line move.
It represents situations where a step advance or decline has gotten ahead of itself, and where the market pauses briefly to "catch its breath" before running off again in the same direction.
Construction of Flag & Pole pattern:
The flag resembles a parallelogram or rectangle market by two parallel trendlines that tend to slope against the prevailing trend.
The flag usually occurs after a sharp move & represents a brief pause in the trend.
The flag should slope against the trend. Volume should dry up during the formation & built again on the breakout.
How to trade flag and pole patterns:
The sideways period is often followed by another sharp rise. This is where the trading opportunity comes in. Once the flag pole and a flag or have formed, traders watch for the price to breakout above the upper flag/trend line. When this occurs, enter a long trade.
Conclusion:
1-Flag patterns are a commonly used technical analysis tool and majorly a choice of breakout traders and swing traders.
2- Flag is formed when there is a minor profit booking in either an uptrend or a downtrend.
3- The pole is formed by a line that represents the primary trend in the market.
4- It is important that flags are preceded by a sharp advance or decline.
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.