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Trading the Pennant and Flag pattern
According to Thomas Bulkowski, one of the most profitable technical patterns is the high and tight flag, breaking higher. According to Bulkowski, when properly recognised, it can reach a target up to 90% of the time. So, here is what you need to look for to recognise them. Here are the steps to recognising the pattern: First of all, you need to witness a steep and sharp price trend (ideally over 90% gain). Ideally, this price move should be around 45 degrees. Then you need to see the price form a small channel that resembles a ‘flag’ pattern. The best performance comes from when the flag slopes away from the ... (full story)
