How long did a flag breakout last?

Duration: From a high at 38 to the breakout at 36, the flag formed over a 23-day period. Breakout: The first break above the flag's upper trend line occurred on 21-June without an expansion of volume. However, the stock gapped up a week later and closed strong with above-average volume (red arrows).

What happens if you break a flag?

The breakout from a flag often results in a powerful move higher, measuring the length of the prior flag pole. It is important to note that these patterns work the same in reverse and are known as bear flags and pennants. Bull flags typically begin to surface in conjunction with a new market rally.

How does a flag pattern work?

As the Flag pattern emerges, you will see a large impulse move, commonly known as the Flag Pole. This is followed by a brief consolidation which takes on the appearance of a Flag. Once the Flag Pole has been formed, a valid Flag pattern begins to trade within a tight range, forming the shape of a flag.

What is a flag formation?

The formation usually occurs after a strong trending move that can contain gaps (this move is known as the mast or pole of the flag) where the flag represents a relatively short period of indecision. The pattern usually forms at the midpoint of a full swing and consolidates the prior move.