the flag chart pattern in NIFTY

A flag chart pattern is formed when the market consolidates in a narrow range after a sharp move.

Flag Pattern is one of the most popular chart patterns, formed by price action, which is contained within a small rectangle or a channel in the shape of a flag. Flags are short-term continuation patterns that mark a small consolidation before the previous move resumes.

Flags can be seen in any time frame but normally consist of about five to 15 price bars.

Trading with Bullish Flag

> Flag Buy Signal - When the price has moved higher and prices have consolidated, creating a channel of support and resistance, a potential buy signal is given when prices penetrate and close above the upward resistance line.
> The pattern has completed when the price breaks out of the containing trend lines in the direction of the prevailing trend, at which point it will likely continue its course.
> Targets: The length of the flagpole can be applied to the resistance line of the flag to estimate the advance or target area.

MACD helps investors understand whether the bullish or bearish ... you can see how the two EMAs applied to the price chart