Flag Condition
The flagpole - the asset’s price must trade higher in a series of the higher highs and higher lows;
Flag - a consolidation must take place between two parallel trend lines;
A breakout - the consolidation can’t take forever. A breakout to the upside activates the pattern, while a break of the supporting line invalidates the formation.
The flagpole - the asset’s price must trade higher in a series of the higher highs and higher lows;
Flag - a consolidation must take place between two parallel trend lines;
A breakout - the consolidation can’t take forever. A breakout to the upside activates the pattern, while a break of the supporting line invalidates the formation.