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Flag (Bullish)

Trading Term

The pattern follows a steep or nearly vertical rise in price and consists of two parallel trendlines that form a rectangular flag shape. The Flag can be horizontal (as though the wind is blowing it), although it often has a slight downtrend. The vertical uptrend, that precedes a Flag, may occur because of buyers’ reactions to a favorable company earnings announcement, or a new product launch. The sharp price increase is sometimes referred to as the “flagpole” or “mast”.

Trading Central chart pattern example of a bullish flag.

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