Flags are areas of tight consolidation in price action showing a counter-trend move that follows directly after a sharp in price. The pattern typically consists of between five and twenty price bars. Flag patterns can be either upward trending ( ) or downward trending ( ). The bottom of the flag should not exceed the midpoint of the flagpole that preceded it. Flag patterns have five main characteristics:
The preceding trend
The consolidation channel
A confirmation where price moves in the same direction as the breakout
The is much more predictable when it is created out of good .
Game plan is to buy the break of resistance and follow the trend using the 9SMA as a trailing stop loss.