A Flag Pattern is one of the most reliable continuation patterns in technical analysis.
It forms in three clear stages:
🔹 Strong Move (Flagpole)
Price makes a sharp, impulsive move with strong momentum.
🔹 Consolidation (Flag)
The market pauses and cools off, moving in a small parallel channel or slight pullback.
🔹 Continuation
After consolidation, price breaks out and continues in the same direction as the original move.
Key Insight:
Flags represent smart money resting, not exiting.
When the breakout comes with volume, momentum often accelerates.
📌 Best used in trending markets
📌 Works well across crypto, forex, and stocks
Trade the trend. Let the market do the heavy lifting.
