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, , FLAG Pattern
, , FLAG Pattern
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Candlesticks used while spotting a Flag pattern.
Price trend is seen in the form of a flag with steeper pole, a side way price movement and breakout on the same side.
Conditions:
• Pole: Steeper Trend spotted
• Rectangular Price movement (sideways) movement occurs over a period of 14 days.
• Volume low during the sideways movement indicating that sellers are not selling
• Positive pole flag giving Positive break out.
• Volume has increased while giving breakout
Long position created at the highest point of the trend line.
• Entry price: Rs. 676
• Target price: Rs. 702 (Risk:reward is 1:1)
• Stop loss: Rs 650 (Lowest point of the trend line)
FLAG PATTERN CONDITIONS:
1. STEEPER POLE SHOULD BE 70-85 DEGREES
2. DURATION OF THE POLE SHOULD BE LESS THAN 3 DAYS.
3. RECTANGULAR MOVEMENT SHOULD BE 3 TO 7 DAYS.
4. BREAK OUT SHOULD HAPPEN IN THE SAME SIDE WITH GOOD VOLUME.
HAI YOGI RAMACHANDRAN, ITS BETTER TO CONSIDER THE ABOVE CONDITIONS TOO.
Very relevant points. Thank you for sharing.