đA flag pattern is a common technical analysis pattern in trading that often signals a continuation of the existing trend.
đ It's called a "flag" because its appearance resembles a flag on a flagpole.
đFirst, you have an initial strong price movement called the "flagpole." This can be either a sharp upward (bullish) or downward (bearish) price move.
đAfter the flagpole, you'll notice a consolidation phase known as the "flag." During this phase, the price typically moves in a sideways or slightly counter-trend direction. This forms a rectangular or sloping channel. The flag is characterized by lower trading volume.
đ The key insight is that the flag is usually followed by a breakout in the same direction as the initial flagpole. If the flagpole was bullish, you'd expect a bullish breakout, and if it was bearish, you'd expect a bearish breakout.#opbnb #ETH #Layer2 #BTC #crypto2023 $BTC $ETH $BNB
