BEARISH FLAG PATTERN – Part 2: Important Characteristics

Go back to Part 1: Bearish Flag Formation.Important Characteristics of Bearish Flag PatternShape of Bearish Flag:1) Flagpole:For Bearish Flag pattern to be more reliable, there should be a very sharp / steep price decrease (almost vertical, and may contain gaps) on heavy volume that makes the “Flagpole” part of the pattern.Without a steep price decrease, the pattern might be less reliable and riskier.2) Flag:A Flag part of the pattern is formed when the price movement is contained within two parallel lines, representing a brief consolidation after...

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BEARISH FLAG PATTERN – Part 1: Formation

Bearish Flag is a short term bearish continuation pattern that occurs during a downtrend, indicating a pause / small consolidation before continuing its downward moves.This pattern normally appears following a sharp price decrease on high volume.The Formation of Bearish FlagBearish Flag Pattern is usually preceded by a very steep (almost vertical) decrease in price on heavy volume. This steep price decrease makes the “Flagpole” of the pattern.The...

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Chart Patterns

Click the following links to read each article: 1) Technical Analysis – Definition & Assumptions 2) Chart Patterns – Introduction CONTINUATION PATTERNS: 3) ASCENDING TRIANGLE PATTERN * Part 1: Ascending Triangle Formation * Part 2: Ascending Triangle Important Characteristics 4) DESCENDING TRIANGLE PATTERN * Part 1: Descending Triangle Formation * Part 2: Descending Triangle Important Characteristics 5) SYMMETRICAL TRIANGLE * Part 1: Symmetrical Triangle Formation * Part 2: Symmetrical Triangle Important Characteristics 6) BULLISH FLAG...

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BULLISH FLAG PATTERN – Part 2: Important Characteristics

Go back to Part 1: Bullish Flag Formation.Important Characteristics of Bullish Flag PatternShape of Bullish Flag:1) Flagpole:For Bullish Flag pattern to be more reliable, there should be a very sharp / steep price increase (almost vertical, and may contain gaps) on heavy volume that makes the “Flagpole” part of the pattern.Without a steep price increase, the pattern might be less reliable and riskier.2) Flag:A Flag part of the pattern is formed when the price movement is contained within two parallel lines, representing a brief consolidation after...

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Reading Links

Daily Options Report: Implied V. HistoricalOne Option: How Do I Know If I Get A Good Deal On An Options Purchase?Options Guy: Long Calendar Spreads - Part 1.Options Trading The Smart Way: Calendar Spreads Ideas on DISHAfraid To Trade: Most Perfect Downtrend ExampleStock Bandit: Consider Risk First, Then RewardA Trade A Day: Merge Time Frames to Make More Mo...

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BULLISH FLAG PATTERN – Part 1: Formation

Bullish Flag is a short term bullish continuation pattern that occurs during an uptrend, indicating a pause / small consolidation before continuing the uptrend.This pattern normally appears following a sharp price increase on high volume.The Formation of Bullish FlagBullish Flag Pattern is usually preceded by a very steep (almost vertical) increase in price on heavy volume. This steep price increase makes the “Flagpole” of the pattern.The sharp rise...

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SYMMETRICAL TRIANGLE PATTERN – Part 2: Important Characteristics

Go back to Part 1: Symmetrical Triangle Formation.Important Characteristics of Symmetrical Triangle PatternExisting Trend:There should be an established existing trend (either uptrend or downtrend) in order for the pattern to qualify as a continuation pattern.Shape of Symmetrical Triangle:* There should be at least 4 reversal points to draw two converging lines, i.e. two successively lower peak (high) points forming a downward sloping upper line and two successively higher trough (low) points forming an upward sloping lower line, which converge...

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