Flag pattern (Marathi)

The flag pattern can be very easily explained by the sentiment that is sometimes witnessed around Independence Day or Republic Day. These days - when flags are dusted off and unfurled with much pride, respect, and enthusiasm - see people rekindle their sense of patriotism. Everyone appears more patriotic during a flag hoisting ceremony.

The flag pattern in technical trading - according to traders - has a similar effect on stock prices. Upon the appearance of a Flag Pattern, traders usually anticipate that stock prices will return to a previous trajectory… one that they had veered away from in the short term. For example, if stock prices were rising before the appearance of a flag pattern, traders expect that the stock prices will make a sharp about-turn from their temporary downward movement and swing upwards again.

The Flag Pattern is formed on a stock graph by a stock price pattern that in the short term, reverses the trend that is dominant in the long term.