Flags and Pennants

Flags and pennants are very solid stock chart patterns. They signalize very good trading opportunities.

I like these chart patterns. And a lot of other traders also agree that they are most reliable chart patterns.

They are known as continuation stock chart patterns. You can find them after strong trend move. These patterns represents consolidation and little sideways move. When price breaks from the pattern, then trend resumes again.

Bullish version has lower lows and lower highs against previous main trend direction. Trend lines for highs and lows are parallel.

Pennants have another design. Trend lines are not parallel but they are going to meet at one point. This pattern is also smaller in size and also needs less time to develop.

I like these stock chart patterns very much. A lot of of my trade setups are based on these patterns.