Skip to main content

The Flag And Pennant Pattern

flagAndPennant

The Flag And Pennant Pattern

Flags and Pennants can be categorized as continuation patterns. They usually represent only brief pauses in a dynamic stock. They are typically seen right after a big, quick move. The stock then usually takes off again in the same direction.

Here is a Typical Flags and Pennants Pattern:
  • Bullish flags are characterized by lower tops and lower bottoms, with the pattern slanting against the trend. But unlike wedges, their trend lines run parallel.
  • Bearish flags are comprised of higher tops and higher bottoms. "Bear" flags also have a tendency to slope against the trend. Their trend lines run parallel as well.

Pennants look very much like symmetrical triangles. But pennants are typically smaller in size (volatility) and duration. Volume generally contracts during the pause with an increase on the breakout.

Here is a Typical Flags and Pennants Pattern in NEPSE Daily Chart:
Labels:

Comments

Post a Comment

Popular posts from this blog

The Head And Shoulders Pattern

headAndShouldersPattern The Head And Shoulders Pattern The Head and Shoulders Pattern is generally regarded as a reversal pattern and it is most often seen in up-trends. It is also most reliable when found in an up-trend as well. Eventually, the market begins to slow down and the forces of supply and demand are generally considered in balance. The Following is a Typical Trend of a Head and Shoulders Pattern The Formation of a Head and Shoulders Pattern Sellers come in at the highs (left shoulder) and the downside is probed (beginning neckline). ...
Post a Comment
Read more

Five sectoral indices closed green while NEPSE Index loosing 0.14%

 Five sector indices closed green while NEPSE Index loosing 0.14%;  The NEPSE index closed at 1,897.08 today after losing 2.62 points from the last trading day's closing.  This is a loss of 0.14%. The index lost 2.57 points yesterday. Nepse index 12-Dec-22 Five sector indices closed green; "Hotel and Tourism" gained the highest by 0.72%. Technical Analysis Technically Charts has not much changes although buyers are unable to beat sellers at buyers areas is not favorable sign for those who have bought.
Post a Comment
Read more