Continuous Patterns (Flags and Pennants)

Continuous Patterns (Flags and Pennants)


Let me explain the characteristics of flags and pennants. Think of as a rectangular flag that is fluttering, and pennants as a fluttering flag. But it"s a triangular flag!



From the figure above, we can see that flags and pennants are a correction of the original trend. Before moving in the same direction, for example, if the original trend is an uptrend, when flags or pennants are formed, the price weakens in a retracement manner, after which it continues to move in the direction of the uptrend. As before, the movement of the volume traded will be The same applies to price movements, When the volume is rising. The number of volumes is increasing accordingly. But when the volume is resting The number of volumes has decreased accordingly. And most importantly, the time it takes for flags and pennants to form is usually no more than three weeks.

Example pictures below. Want to show flags formed during a big trend, another figure. Emergence of patterns It can be mixed at any time. From the example, you can see that the price movement before and after the flag is still in the same direction. That is, from the upside, it still depends. And in the example picture that is a downtrend It"s still going down.



Flags.jpg 34 KB (35) anz_flags_20060614.png 4 KB (25) flags-pennants.jpg 19 KB (87) bearish-flag-pennant-gold.png 16 KB (24) Pennants.jpg 31 KB (27)

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