FLAG is a powerful pattern. The Characteristics are
The Pole should be steep – 75-80 degrees.
Volume should should not fluctuate too much during flag formation
Generally Takes less time to form
Positive pole flag should give positive Breakout
Volume should increase while giving Breakout.
I have chosen CADILAHC stock for this pattern. Please refer chart attached. Steeper pole almost 90 degrees observed.
Flag formation has taken a bit longer about three months. shows there was severe competiotion between buyers and sellers and both did not want to yield to other. Positive pole has given positive breakout.
Long position created
Entry Price: Rs.462
STOP LOSS: Rs.438
TARGET: Rs. 486
DURATION: 7 – 10 day
