What is a flag pattern in technical analysis?

A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole). Flag patterns are accompanied by representative volume indicators as well as price action. Flag patterns signify trend reversals or breakouts after a period of consolidation.

What is a flag stock chart pattern?

The flag stock chart pattern is shaped as a sloping rectangle, where the support and resistance lines run parallel until there is a breakout. The breakout is usually the opposite direction of the trendlines, meaning this is a reversal pattern. Learn more about breakout stock patterns. 6. Wedge

What is a 'low and tight flag' chart pattern?

This is called as 'Low and Tight Flag'. If this is bullish flag, we called it as High and Tight Bullish Flag. This pattern is where you can grow your account largely (with risk-calculated). The size of TP... Triangles, Flags, Pennants. Chart patterns, are becoming one of my favorites points of view in the market.

What is the Black Channel in a flag chart pattern?

The black channel in the graphic is the Flag. If you look at the graphic, it looks like a Flag, just like its name. It is easy for you to recognize this pattern once you know what to look for. The Flag Pole is the first component of the Flag Chart Pattern. It shows a trend impulse on the chart.