Pole And Flag Pattern For BANKNIFTY
- WHAT IS A POLE AND FLAG PATTERN
A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move. Usually, a breakout from the flag is in the form of a continuation of the prior trend. Flags give a very high-risk reward ratio which means relatively small risk and high and quick profits.
- Flag patterns are a commonly used-technical analysis tool and majorly a choice of breakout traders and swing traders.
- The flag is formed when there is a minor profit booking in either an uptrend or a downtrend.
- The pole is formed by a line that represents the primary trend in the market.