Flag Pattern

Whenever investors want to test the current market value of a currency or commodity, they use this model. With the buying and selling that takes place during this period of testing, which usually lasts one to three weeks, oscillations are formed that intersect with parallel diagonal lines to form a “flag” shape. Flag patterns can occur in both bearish and bullish trends. The price usually moves again in the path before the flag is formed after the flag pattern appears, and the continuation of this trend will take at least as long as the time of its formation.

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