Flag
a.k.a. Flag pattern
A short, tidy pause shaped like a small rectangle tilting against a sharp move, usually followed by the…
In plain English
A short, tidy pause shaped like a small rectangle tilting against a sharp move, usually followed by the move continuing.
A flag has two parts: a sharp move (the pole) and a small sideways or counter-trend drift in a neat channel (the flag).
It signals the trend is catching its breath. Breaks in the direction of the pole are the classic signal. See bull flag and bear flag.
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