FLAGS - HIGHT AND TIGHT

In this blog we will discuss a version of Flag pattern which is somewhat different from usual flag but gives promising result while trading/investing.

IDENTIFICATION - 

A rise of minimum 90% within a period of 2 months and thereafter a consolidation of several days to weeks plainly visible to the casual observer with a receding volume trend for best performance.



TRADING -

Average rise after the pattern formation is 50% of the previous increase from were the uptrend has started.

Buy after the breakout from the consolidation area and stop loss would be the last low the stock made. 

BEST PERFORMANCE - 

  • Trade with prevailing trend of the market
  • Flags without breakout day gaps performs better
  • Select flags which are TALL and WIDE

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