Flag Continuation Chart Pattern Video Lecture | Chart Pattern Trading: Learn the Fundamentals - Business Basics

good afternoon everyone this is
Christian with perfect stock alert calm
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can't say that today we'll be taking a
look at the flag pattern this is a
continuation pattern it can be seen in
an uptrend or a downtrend the first
phase of the flag pattern will be the
formation of the pole and that basically
is this line right here whenever you
form that it starts from a nice rally
basically from a breakout point or
support level in this case you have
right here a nice move up here and that
move has to be supported by strong
volume to confirm this okay the next
phase will be the flag itself this
creates a it's a consolidation period
basically and the flag will trend down
that is going counter trend of the
overall picture here if you look at this
is moving actually up and takes the
moment moving down in sideways and then
continues upward again again in this
particular case this is a bullish flag
pattern pointing down if it were
pointing up in a downtrend be a bearish
flag pattern the flag pattern just
basically is a consolidation period at
the middle of an overall move so in this
particular case we're looking at
sideways or drifting lower on this flag
you have the resistance level here drawn
along along the high points and the
support line is drawn along low points
ok this basically makes a little channel
these typically last 8 weeks goes beyond
that it gets it comes into question but
you know for 6-8 weeks that's fine and
then you wish you can expect here is
that they move when it breaks out being
the price closes above the resistance
level when that point happens you've
confirmed a flag pattern and you're
likely to see this move right here
duplicated right here basically in size
the way to measure that is to take the
breakout point previous breakout point
right there is the level all the way up
to the top of the flag pattern that
distance is what you project from the
breakout point right here that's what
this blue
line is representing right there okay
this gives you a target it's not an
exact science because you some idea of
how how you expect price to go from the
breakout again let me be clear on this
you want to see strong volume on the
initial rally prior to the flag pattern
and that's important it gives you more
confidence that there's more upside to
come or if you were in a downtrend more
downside to come this consolidation
phase can be on very low volume that's
quite normal
you may also see an increase on volume
on the way of backup for the second part
of the run but it doesn't have to be as
substantial as the first as it was here
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