Flag, Pennant (Continuation) - ChartSchool - StockCharts

Flag, Pennant (Continuation) - ChartSchool - StockCharts -...

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18/2/2014 Flag, Pennant (Continuation) - ChartSchool - StockCharts.com 1/3 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Flag, Pennant (Continuation) Advertisement Flag, Pennant (Continuation) Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume , and mark a mid-point of the move. 1. Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. Flags and pennants require evidence of a sharp advance or decline on heavy volume. These moves usually occur on heavy volume and can contain gaps . This move usually represents the first leg of a significant advance or decline and the flag/pennant is merely a pause. 2. Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag/pennant. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level. A line extending up from this break to the high of the flag/pennant forms the flagpole.
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  • Spring '12
  • RamonBrunoTulibasJr.
  • Flag, Hpq, sharp advance

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