Tag: consolidation
What Are Bull Flag and Bear Flag Patterns?
The bull and bear flags are continuation patterns that represent a brief pause in a high-momentum move. In the fast-moving environment of a trending market, price rarely moves in a single vertical line without stopping. Instead, it moves in “bursts.” A flag pattern captures the moment where the market takes a breath, allowing supply and…
What is the Cup and Handle Pattern?
The Cup and Handle is a structural chart pattern that signals the continuation of an existing trend. It captures a specific market psychology: the transition from a period of high-velocity buying to a slow, rounded correction, followed by a final, tight consolidation before the trend resumes. Traders use this pattern to solve the problem of…
