flag pattern, page-3

The flag pattern looks like a flag. the vpg flag seems to begin formation on 07/01 after the quick rise (like flag pole) with heavy volume. the flag has the form of a parallelogram with a slight downtrend in an up trend, usually with lighter volume, representing a period of controlled profit taking in rising market. this pattern is short term pattern and may lasting one or a few weeks. It usually (but not always) breaks out in its direction before the flag formation. as for vpg it would be the up trend. if the period of the flag is loner it fails and the probability of keeping former trend will be low.