Flags/Pennants

Flags/Pennants
   These price patterns, used in technical analysis, represent brief pauses after a sharp advance or decline that has gone ahead of itself. The market trades in a tight range for a while before running off in the direction of the main trend. Flags and pennants are among the most reliable continuation patterns in technical analysis and rarely produce a trend reversal. (Figure 8.)
   ► See also Technical Analysis.

Financial and business terms. 2012.

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