trading
swing picks
Trading Home
TRADING STOCKS - CHART PATTERNS

levelSwing Trading Picks ] [ Swing Ideas ] [ Swing Charts ] [ Daily Stock Picks ] [ Trading Software ] [ Chart Patterns]

Stock Trading  Stock Trading - Technical Analysis, Trading stocks, Stock Charts, Trading strategies

Trading Education   Trading Ideas   Trading Strategies   Trading Tools
 

 

 
TRADING STOCKS TACTICS - CHART PATTERNS

Limited Offer - 60 days Try-Out:
Try Forex Profit Accelerator For FREE
Special Time Limited Risk-Free Offer!

Protect & Grow your portfolio
Portfolio Prophet
AVOID market crashes

Forex Profit Multiplier
MULTIPLY your profit potential in 60 seconds or less of active trading

Continuation Chart Patterns

Trading stocks education - Trading tactics & examples

Bull Flag Pattern

Bull flag is a sharp, strong volume rally on a positive fundamental development, several days of sideways to lower price action on much weaker volume followed by a second, sharp rally to new highs on strong volume.

The technical target is derived by adding the height of the flag pole to the eventual breakout level at point (e).


Bullish Flag
chart courtesy of StockCharts.com

P.S. - Do you want to day trade Stocks, Futures & Forex with up to 90% accuracy? Try the Millennium Traders a consistently profitable trader through all market conditions, one of the most profitable trading service on the net ... » Get More Info Now!


  • Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. There should be an evidence of a sharp advance, usually on heavy volume that can contain gaps. This move usually represents the first leg of a significant advance and the flag is merely a pause.
  • Flagpole: The flagpole is the distance from the first resistance break to the high of the flag. The sharp advance that forms the flagpole should break a trend line or resistance level. A line extending up from this break to the high of the flag forms the flagpole.
  • Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines.
  • Duration: Flags are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
  • Break: For a bullish flag, a break above resistance signals that the previous advance has resumed.
  • Volume: Volume should be heavy during the advance or decline that forms the flagpole. Heavy volume provides legitimacy for the sudden and sharp move that creates the flagpole. An expansion of volume on the resistance break lends credence to the validity of the formation and the likelihood of continuation.
  • Targets: The length of the flagpole can be applied to the resistance break of the flag to estimate the advance or decline.

* * *

Swing Trading:   Futures Trading | Quantum Swing Trader | Day Trading | Trade Forex
   Quantum Swing Trader  ~  Swing Trading Principles  ~  UMT  ~  ETF  ~  Trading Videos

  Trading Tactics
  Chart Patterns
  Swing Trading
  Trading Gaps
  Elliott Wave Trading
  Strategy Guide
  Technical Analysis
  Trading Software
  Trading Stock Picks
  Trading Commentary
  Daily Trading Signals
  Charts:
*   BDY
*   HAS
*   ADRX
*   GOOG
*   MSFT
*   MICU
*   PETM
*   SBGI
*   SHOP
*   SOLF
ChartPattern Trading $ystems
Dan Zanger Offers You 3 week FREE trial!

Shopping: Products & Services

Swing Trading Daily Blog     Swing Trading Ideas
Trading - VIII   VII   VI   V   IV   III   II   I   XII   XI   X   IX

Trading Tutorials   Pattern Cycles Highs, Bottoms, Breakouts, Declines, Reversals, Tops, Trends | On Bottoms | Adam & Eve Tops | Adam-Eve-Adam | Bilateral Setups | Bollinger Band Tactics | Market Physics | 5 Fibonacii Tricks | Hell's Triangle | MA Crossovers | OverBought / OverSold | The Big W | Time Trading | Voodoo Trading

Chart-Pattern

Futures Trading Room

Forex Trading Room



Sharks     Great White Shark     Shark Attacks     Med Sea Sharks
               Wizard of ID