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A flag pattern can happen at the early phase of the trend.The steeper pole present in inclined at 70 to 80 deg for minimum 2 days price movement and side way movement for 3 to 7 days and when breakout the side way movement with high volume in upper direction, then we understand the trend is up.
Conditions:
-A steeper pole
– rectangular sideways trend that should not drift downwards.
-positive breakout on the same side with high volume
– takes 2 weeks to form this pattern
Flag pattern is one of the trend indicator in price pattern. A Perfect flat should meet the following conditions.
It should have a steeper pole followed by sideways movement which is considered as body of the flag. Positive pole flag should give positive break out. Volume should be significantly high during break out. The Flag should not drift low.
A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole).
Conditions are:
Steeper pole with approximately 70 degree steep
Rectangular movement should happen with in 3 to 7 days)
The flag should not drift down, if happens flag significance will be lost.
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