- The high tight flag chart pattern is an extremely bullish formation.
- It is formed once a stock rises sharply by 50-100% within a few weeks or 1-3 months.
- After that stock pullback is small i.e. 25-30%
- In the next step the price tightens up i.e. small candles or less volatility in the price
- Finally, the stock breaks out with heavy volume
- The stop can be low on that day. Once the stock breaks out trail your stop loss to 10-20 SMA.
- This setup can be highly profitable for the traders.
I found this setup for TCI and it worked as expected.
Hope you like it.