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It is based on price action.
This is created when there is a minor profit booking in an uptrend or down trend
Flag pattern is a very powerful pattern. It forms like a flag shape. Flag patterns happens frequently compared to other patterns.
The conditions for flag pattern are :
A steep pole of 75 – 80 degree should be formed
Rectangular price movements should happen for 3-7 days
Volume should be lower during the range area
Flag should not drift lower
This is a price pattern which forms like a flag.
one steeper pole
rectangular shaped sideways can be considered flag
it happens at earliest stage of the trend and takes less time to form ( flag formation takes 4 to 7 days)
high volume is expected while breakout
it looks good on candle stick charts instead of bar/line charts
a) surge in momentum
b) pole should be steeper with 75 to 80 degree
c) rectangular movement from 3 to 7 days
d) volume should be low at the flag days
e) break out at the same side
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