FLAG AND POLE PATTERN / BEARISH DIVERGENCE IN BANKNIFTY
BANKNIFTY IS MAKING FLAG AND POLE PATTERN
The flag and pole pattern is a bullish pattern. Pole represents the trendy market and Flag represents the consolidation in a tight range.
Flag patterns have five main characteristics:
1. The preceding trend
2. The consolidation channel
3. The volume pattern
4. A breakout
5. A confirmation where price moves in the same direction as the breakout
Bullish and bearish patterns have similar structures but differ in trend direction and subtle differences in volume pattern. The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level since bearish trends tend to increase in volume as time progresses.
The flag and pole pattern is a bullish pattern. Pole represents the trendy market and Flag represents the consolidation in a tight range.
Flag patterns have five main characteristics:
1. The preceding trend
2. The consolidation channel
3. The volume pattern
4. A breakout
5. A confirmation where price moves in the same direction as the breakout
Bullish and bearish patterns have similar structures but differ in trend direction and subtle differences in volume pattern. The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level since bearish trends tend to increase in volume as time progresses.
