Flag Pennant Continuation Pattern

Flag Pennant Continuation pattern Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a midpoint of the move. Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. Flags and pennants require evidence of a sharp advance or decline on heavy volume. These moves usually occur on heavy volume and can contain gaps. This move usually represents the first leg of a…

Support and Resistance

5 Critical Rules for Understanding Support and Resistance Two of the most basic, yet effective, technical patterns are support and resistance. These events are horizontal trendlines which cause a stock’s direction to reverse. When prices are falling, support represents the moment when buying overwhelms selling and prices reverse. Conversely, when stocks are moving higher, resistance is the point where selling overwhelms buying and the price increases stop. Correctly identifying these trend changers will allow you to establish initial price targets and to develop your own sell discipline. As with other…