Bullish Flag Example are tracked down in the outline areas of strength for with and are cosidered as Bullish Continuation Examples. They are called as Flag since they seem to be a shape banner on a shaft ( flag implies a shape banner on a boat) The Flag are like Banner examples just contrast is the genuine combination with joining pattern lines.


Fig. 1 Bullish Pennant Pattern


CHECK POINTS:


1. Reliable Pennant appear during sleep, quick price trend.
2. The price action for pennant is bound by two converging trend lines.
3. The volume is ussually goes down during formation of Pennants. 


Signal strenght points:

1. Exchange with bullish market pattern for bullish Flag designs.
2. Tall Flags design perform better compared to shorts ones.
3. Legacy or pullback after breakout, harms execution.
4. Flag with falling volume patterns perform better.


Psychology:

    The Flag kind of continuation design are framed when there is huge vertical development of the stocks, trailed by union period with convergingtrends line followed by breakout in the equivalent prevailling upturn. The second development after breakout is ussually same as past post. It is likewise critical to know thst these examples work samein invert and knowns are Negative Flag Psttern.

Study Examples:

Lets study some real-life example for Bullish Pennant pattern.


Fig 1.1 Bullish Pennant Patter


    In above model (fig1.1) we can utilized upswing in process, then, at that point, combination stage occured, tis make the bullish flag design. Notice the volume is falling during the flag arrangement. The breakout flame upheld on the trentline additionally note the volume pattern in the descending bearing, on breakout the volume strike, It shows solid breakout certainty, This example breakout then, at that point, move the stock cost to the new high. Target is approx. same as that of size of post.



 Fig 1.2 Bullish Flag Disappointment

  
     Above model show bullish pennanr failue (fig 1.2) the cost move didn't arrive at the normal objective. In this model we can see that the volume didn't fall all through the flag design establishment and didn't affirm the sign for better anticipated outcome. In such case you ought to be out of the exchange on the off chance that you see any shortcoming the cost and search for better exchange or try not to enter the exchange.







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