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Flag Pattern (Consolidation)
Technical AnalysisA short consolidation that slopes against the direction of the prior trend. A bull flag drifts lower after a rally; a bear flag drifts higher after a decline. Breakout resumes the original trend.
Related Terms
Flag Pattern
A continuation pattern that looks like a small rectangle tilting against the prior trend.
Pennant
A continuation pattern similar to a flag but with converging trendlines forming a small symmetrical triangle.
Continuation Pattern
A chart pattern that signals the existing trend is likely to continue after a pause.
Breakout
When price moves above a resistance level or below a support level with increased volume.