This article can help you if you want to estimate where prices can go up in the stock market or on forex markets in a fast-paced exit or decline, and on what levels flag formation is used.
As the prices move up or down in the markets, investors are surprised by the fact that indices are acting too quickly in the market conditions. If you are hesitant to buy or sell in these types of bonds or indices that increase adrenalin, would you not like to wait until the price is reached by projecting to what level the price can be reached before buying or selling?
You will learn how to determine the levels at which promissory notes can or can be reached in a simple and understandable level in this article.
The flag is the most common and most reliable formations. The flag usually occurs after a very hard exit or fall and shows that the prices are on the console before continuing on the same trend.
How Much It Can Carry the Price?
Generally, during consolidation, the direction of prices occurs in the opposite direction of the main trend. This shows the hesitation about whether or not the market will continue in the current trend. However, as a result, this period is a period of hesitation and the actual trend continues afterwards.
Although the flag formation shows that the main trend will continue, there is a visible visual difference between these two formations.
The flag has a much more rectangular consolidation process; Support and resistance points are equally spaced. The flap consists of supporting and resistance points (like an asymmetric triangle) moving towards each other. The flag and is visible at the end of a strike or a very stiff trend.