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A flag pattern in technical analysis is a short-term continuation pattern that resembles a rectangle or parallelogram, formed after a sharp price movement (the "flagpole"). It consists of:
Flagpole: Strong initial price move (up or down).
Flag: Small, consolidating price movement in the opposite direction, forming a rectangular or slanted channel.
It signals a potential continuation in the direction of the flagpole.
Flagpole: Strong initial price move (up or down).
Flag: Small, consolidating price movement in the opposite direction, forming a rectangular or slanted channel.
It signals a potential continuation in the direction of the flagpole.
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