The flag is one of the most reliable continuation patterns, the original motion is almost always continued. It is preceded by a steep line (Flagstaff) and should be seen as a pause in the rise or fall. The flag is usually half way through the pattern and that makes it possible to determine a price target. The length of the movement for the flag is often the length of the movement from the point of outbreak.
As you can see in the picture above, the flag has been a reliable pattern so far. The falling trend, starting in 2008/2009, had two flags so far and they almost have the same price target. Somewhere between $470 and $490.
As you can see in the picture above, the flag has been a reliable pattern so far. The falling trend, starting in 2008/2009, had two flags so far and they almost have the same price target. Somewhere between $470 and $490.
