This is a bearish flag pattern. The steeper pole is between 70 to 80 degrees. The entry point is at point A which is just above the flag formation. The price level is at Rs 438.40. B is the target at Rs 431.20 which is arrived at by deducting RS 438.40 by Rs 6.70 plus a something more. The width of the flag is between C to D. That is Rs 446.80 minus Rs 440.10 which equals to Rs 6.70. The stop loss is at E which is at Rs 453.10 which is just below the flag formation. The volume is low during the flag formation.
, , FLAG Pattern
Hi,
Good attempt… Try to find more appropriate flag pattern
Identifying the flag pattern is an easy job if you have the right trading conditions.
Now is the time to go through the flag chart pattern strategy step-by-step conditions for the bearish flag pattern or Inverted flag pattern
A bearish flag pattern forms when the price falls sharply, then moves sideways. This sideways movement can be considered as flag and volume should be low during the sideway movement meanwhile volume should be high during the breakout day.
Don’t consider single day steeper pole
Duration of the sideways movement of the flag cloth is 4-7 days.
Trade Plan for bearish flag pattern-
Your entry should be just below the breakouts of the consolidation
Set a stop loss just above the flag formation
Your target should be based on the height of the flag
Refer the below screenshot
Sample pic
Thank you. Will try again.
I am attempting again.
The chart pertains to the bearish flag pattern of Elecon Engineering Co Ltd. I noticed the flag formation at Rs 51.50 to Rs 49.70. This formed after a steep fall in price represented by the steeper pole marked. The entry level is just below the breakout at Rs 49.40. The stop loss is just before the flag formation at Rs 52.30. The target is Rs 47.10. It has been arrived at by entry level Rs 49.10 minus width of the flag which is Rs 1.80 rounded off to Rs 2/-.
Please do not hesitate to correct me.