What is an ascending flag?

An ascending flag is a continuation pattern. The ascending flag is formed by two straight upward parallel lines which are shaped like a rectangle. It is adjusted in the direction of the trend that it consolidates. Contrary to a bullish channel, this pattern is quite short term and marks the fact the seller will need a break.

What are flag patterns?

Flag patterns usually have sudden price fluctuations or trading volume decrease. After the flag’s ribbon is formed, the share price moves in a parallel channel. Flagpole is from the beginning of the trend until the flag’s maximum. The trading volume is especially high at the formation of the flagpole.

What is a flag trend?

The Flag is a trend continuation pattern that gives you the opportunity to enter the market in the middle of a trend. It occurs when the price of an asset moves up or down in a strong trend that suddenly pauses. The price then trades roughly sideways in a fairly narrow range, often moving gently in the opposite direction to the original trend.

Are flags a good pattern for swing trading?

Flags are continuation patterns and are the best pattern for swing trading. It means the prior trend continues, and the flag is a midpoint of the full swing. As always, a general note, the stocks discussed in the article aren’t a recommendation but are only for the understanding of the chart patterns with real examples.