📈🚩 Ascending Flag Pattern – A Strong Technical Signal for Continued Uptrend
The attached image clearly shows the "ascending flag" pattern, which is one of the most famous continuation patterns in technical analysis.
🔍 What is the pattern?
It is a temporary consolidation period within an uptrend, characterized by a sideways or downward-sloping corrective movement resembling a flag, preceded by a sharp upward movement known as the "flagpole".
📌 Pattern Details:
Flagpole: Represents the initial strong upward movement
Descending Channel: Represents temporary consolidation
Entry Point: After breaking the upper boundary of the channel
Expected Target: Equal to the length of the previous flagpole
✅ Trader's Strategy:
Buy upon a breakout upwards
Set a stop loss below the channel
Target = Length of the flagpole added to the breakout point
🧠 Information for Beginners: This pattern is considered a strong indication of continued bullish momentum in the market, especially if it coincides with high trading volume at the breakout.
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