A flag is a small
continuation pattern
and these four stocks recently broke out of one, or are close to it.
Flags provide an entry, stop and target, making them a relatively
straightforward pattern to trade. The pattern is created by a strong run
higher, followed by a small
sideways or downward slanting consolidation, the
flag.
When the price breaks above the flag, initiate a long position, with a
stop below the consolidation/flag. The target is traditionally based on
the height of recent run higher, added to the bottom of the flag.
On-balance volume can also be added to the chart to gauge the strength of trends and legitimacy of breakouts.
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