Pattern Name: Bull Flag Breakout
Visual Structure:
/\
/ \ / (Breakout)
/ \ /
/ \__/
/ (Flag)
/
/ (Flagpole)
Flagpole: Sharp price rise (high volume).
Flag: Small downward/sideways channel (low volume).
Breakout: Price surges above flag resistance → rally continues.
How to Trade It
Spot the Flagpole: Look for a +10%+ price spike in 1-3 days.
Wait for the Flag: Price consolidates in a small parallel channel (down/sideways).
Enter on Breakout: Buy when price breaks above flag’s upper trendline.
Target: Measure flagpole height → project same distance up from breakout.
Example:
Flagpole = 120 (20% rise).
Flag = 118 range.
Breakout at 139 (100 + 119).
Avg. Gain: 12-25% within 2-4 weeks.
Stop-Loss: Below flag’s lower trendline.
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