High tight flag chart pattern forms when a stock rises over 90% (preferably 100%) or more in two months, then consolidates sideways for 15-25 days with a decline of no more than 25%. When there's a breakout of the sideways 'flag' on high volume , the powerful uptrend often resumes.
The entry point is either as the stock breaks the high of the flag or breaks a downtrend line - but only ever on higher than average volume.
Negative is the erratic nature of the flag, would prefer to see more orderly action in the sideways consolidation. Positive is the declining volume in the flag and close adherence to the short term moving averages.
Looking for an entry on a break above the dotted line but only on a day with higher than average volume.
The entry point is either as the stock breaks the high of the flag or breaks a downtrend line - but only ever on higher than average volume.
Negative is the erratic nature of the flag, would prefer to see more orderly action in the sideways consolidation. Positive is the declining volume in the flag and close adherence to the short term moving averages.
Looking for an entry on a break above the dotted line but only on a day with higher than average volume.