Analyzing Chart Patterns: Flags And Pennants

 

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The price objective is expected to be the minimum previous distance of the flag post from the break out price level. So if the market is trending higher and forms a flag, chances are it will break to the upside.

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Jul 18,  · The flag pattern is normally a resting phase of a longer running trend. The flag by its very definition is a continuation pattern, meaning that if the previous trend is up, the expected move is up.

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