Measure Rule for price targes: Compute the height from the start of the price swing to the end of the price swing and then multiply it by the above “percentage meeting price target.” Add it (upward breakouts) to the bottom of the flag or subtract it (downward breakouts) from the top of the flag to get the price target.
Also from Tom Bukowski: "If the flag appears above (upward breakouts) or below (downward breakouts) a flat base then expect the move to be a large one."
Price Trend: Can be any direction leading to the chart pattern.
Shape: Looks like a small rectangle often tilted against the prevailing price trend.
Trend Lines: Price moves between two parallel, or near parallel, trendlines.
Flagpole: The flagpole which leads to the flag should be unusually steep and last several days.
Volume: Downward trend 74% (up breakouts) to 77% (down breakouts) of the time.
Breakout: Upward 60% of the time.
Also from Tom Bukowski: "If the flag appears above (upward breakouts) or below (downward breakouts) a flat base then expect the move to be a large one."
- Break even failure rate for up/down breakouts: 44%/45%
- Average rise/decline: 9%/8% *Performance results for flags are based on the short-term price swing, not the change from the breakout to the ultimate high or low as in most other chart patterns.
- Percentage meeting price target for up/down breakouts: 46%/46%
Price Trend: Can be any direction leading to the chart pattern.
Shape: Looks like a small rectangle often tilted against the prevailing price trend.
Trend Lines: Price moves between two parallel, or near parallel, trendlines.
Flagpole: The flagpole which leads to the flag should be unusually steep and last several days.
Volume: Downward trend 74% (up breakouts) to 77% (down breakouts) of the time.
Breakout: Upward 60% of the time.