The Index has made a Flag Pattern on a 15min time frame. Flag are one of the most seen patterns on an intraday basis and the one of the best performing one.

Flag pattern failures are rare but when a failure is seen the return is high, usually we say failure in flag pattern is a best opportunity to earn return.

A short channel that usually slopes in the opposite direction of the trend. Usually a continuation pattern. Length of the flagpole can be applied to the break as a target

Performance is very good, failure rate is 13% which is very good, volume during the pattern is declining and after breakout volume increases.

Throwback and Pullback are quite rare. It usually occurs in  the middle of the trend as we have seen in this case as well.

If the breakout is seen in the opposite side the movement will be quick i.e. downside

As it is a continuous pattern and the index was moving on the upside we expect it to move higher.

Advice : Once the breakout is seen on either side entry can be taken.

Flag Pattern

Jul 31 2021

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