Monday, October 8, 2012

Flag Patterns

Flag Patterns can take a while to play out, weeks even, on a daily chart.

But I have noticed, that rarely, very rarely does a flag move strongly the "wrong way".

I do often see a "blow off move", i.e. a quick spike to wipe out some stops and prevent some people who have been playing the flag, to get wiped out, right before the real move occurs.

But overall, flags tend to play out the way they should.

There are two types of additional flags that I have coined names for, that being the high flying flag, and the low flying flag.  

I coined these names because I keep seeing these patterns and results, and hadn't see the pattern in a book.    Another top pattern recognition fool by the name of PRS independently labelled this pattern as a "double helix".    I never understood his pick of that name, but we agreed on the shape and the results of the pattern.

The high flying flag is just exuberant, not even pausing to form a reticent flag.

The low flying flag just can't even form a higher low, it just keeps sinking.

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Insightful and Useful Comment!