Graphic pattern "Flag"
The "Flag" pattern is a pattern of continuation of the current trend. It looks like a flag when, after a strong price movement ("flag pole"), a correction zone ("flag flag") is formed, which is either horizontal or has an inclination against the "pole".
The boundaries of the flag pattern are directed against the main trend. Usually the figure appears after strong price movements. The flag pattern may indicate that the bears took the correction for a reversal. It is possible to break through the boundaries of the channel and continue the trend in the same direction. Traders open a position after the flag breaks out in the direction of the main trend.
The correction zone of the "Flag" pattern can look like a "Rectangle", "Triangle", "Wedge". After the correction is completed and the price closes above the resistance line of the "flag panel", buys are recommended, the amount of working out is the height of the "flag pole" (H).
bull flag
With a bullish flag, the price moves up and then consolidates in a narrow range. Highs and lows of the correction are between the boundaries of the pattern. When the upper limit of the bullish flag is broken, the main trend is most likely to continue.
bear flag
The bearish flag pattern is characterized by falling prices. After the price consolidates and continues to move in a narrow range. When the lower border of the bearish flag is broken, the downtrend is most likely to continue.
