What is a “flag”? A flag usually appears as a little pause in a
trending price. It is usually a small consolidation pattern with a
distinct slant. In an upwards price move, for example, you might
see a rather short period of time where prices stay with in a parallel
range with a distinct slant downwards. Most often when a breakout
occurs the prices usually continue in the previous direction, but
sometimes does break out for a reversal. The slant usually occurs in
the opposite direction of the direction the prices were originally
trending.
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