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.

What is a flag pattern in technical analysis?

A flag pattern, in technical analysis, is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole). Flag patterns are accompanied by representative volume indicators as well as price action. Flag patterns signify trend reversals or breakouts after a period of consolidation.

What is a flag in financial markets?

A flag, in technical analysis of the financial markets, is a continuation chart pattern that forms when the market consolidates in a narrow range after a sharp move. The pattern can be seen in any timeframe, and it consists of a small rectangular price formation that follows a fast price movement.

What is a flag in price chart analysis?

In price chart analysis, a flag is a continuation chart pattern that forms when the market consolidates in a narrow range after a sharp move. The pattern can be seen in any timeframe, and it consists of a small rectangular price formation that follows a fast price movement.