Flag

A flag is a continuation pattern that forms after a sharp, near-vertical move known as the flagpole. It takes the shape of a parallel corrective channel sloping mildly against the trend (drifting down after a rally, up after a decline), and a breakout in the flagpole's direction signals continuation. The target equals the flagpole height projected from the breakout point; a properly volume-confirmed flag has a hit rate of roughly 67%.