Investors use the flag pattern chart when investors want to test the current trend of a commodity’s value in the market. The sales made during this test period (usually one to three weeks) form fluctuations that are shown as the diagonal lines become symmetrical and the shape of the flag appears (here we mean the triangular flag ).
Flag patterns occur in both markets with bullish and bearish. Because these patterns show that the current trend is changing and reversing, the flag pattern is considered a type of “continuity” pattern. Once the pattern is formed, this process continues in its previous direction.
See the graphics section for more information on business charts with pictures.