Flag and Pennant (TECHNICAL)

DEFINITION These two short-term chart patterns are continuation patterns that are formed when there is a sharp price movement followed by a generally sideways price movement. This pattern is then completed upon another sharp price movement in the same direction as the move that started the trend. The patterns are generally thought to last from one to three weeks.
DESCRIPTION
Stockstrokes

As you can see, there is little difference between a pennant and a flag. The main difference between these price movements can be seen in the middle section of the chart pattern. In a pennant, the middle section is characterized by converging trend-lines, much like what is seen in a symmetrical triangle. The middle section on the flag pattern, on the other hand, shows a channel pattern, with no convergence between the trend-lines. In both cases, the trend is expected to continue when the price moves above the upper trend-line.

StockStrokes Support

For any query feel free to contact at info@stockstrokes.com, or Call 011–426 77733/22.

CONTACT US
Stockstrokes

Please feel free to contact us @ 011 – 426 77733/22 between 9 AM to 6 PM, Monday through Friday, for any enquiries related to our industry. We shall be eager to assist you. Happy investing !!

Address

Follow Us

Stock Strokes-buy Stock Strokes-sell Stock Strokes-start Stock Strokes-stop Stock Strokes-start Stock Strokes-stop