HIGH AND TIGHT FLAG spotted
High and tight flags are the best performing chart pattern in both bull and bear markets.
THINGS TO KNOW ABOUT THIS PATTERN
Price trend Upward leading to the pattern. The price should rise by at least 90% in less than 2 months.
A consolidation pattern forms after price doubles. It usually doesn't look like a flag or pennant, just a pause in the price rise.
The Volume Recedes for best performance, while The pattern confirms as valid when price closes above the highest peak in the pattern.
Only buy when price closes above the highest peak in the chart pattern (including the flagpole).
That is green box. Buying sooner risks price never confirming the pattern
(in other words, price drops or moves horizontally for months). And yes,this is different from other flag and pennants.
Highest time frame fail too often when using a flag trendline break. Instead, place a buy stop above the highest high in the chart pattern.
The Slope Price trends of 45 degrees or so in the flagpole mean a better post breakout rise than ones that go nearly vertical leading to the flag.
Once a breakout has been achieved, and it closes not only outside the flag but above the head of the pol( the green box)
TECHNICALS suggest placing a buy stop above the highest high on the chart pattern.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.