CHART EXAMPLES OF FLAG AND PENNANT PATTERNS / STOCKS
"BULL" FLAG IN AN UPTREND (BULLISH)
AMHC / American Healthways, Inc.
Flag and Pennant - Shaped like a flagpole with a penant, this formation is characterized by an upward movement with a large slope followed by a period of consolidation.
- Flag and Pennant Patterns
Flag and pennant patterns are continuation patterns, meaning that after they occur, usually price continues to move in the same direction as the prevailing trend. They represent temporary congestion within stock trends.
Flag and pennant are two short-term patterns that usually form during a brief pause in a strongly trending market. The pattern is characterized by a moderate movement in the opposite direction to the main trend.
Both Forex flag and pennant patterns have equal volume formation and they are measured by the same criteria and both are invaluable to Forex traders.
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Lesson 7: The Flag and Pennant Chart Patterns
Lesson 8: Strategies for Trading the Flag and Pennant Chart Patterns
Lesson 9: Learn to Trade Triangle Chart Patterns Part 1
Lesson 9a: Learn to Trade Triangle Chart Patterns Part 2 ...
The difference between flag and pennant formations is that the flag shows a rectangular consolidation period and the pennant is represented by two converging trendlines, resembling a symmetrical triangle.
 See also: Market, Flag, Chart, Pennant, Patterns
  
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