High Tight Flag Pattern  

 

 

 

 


 

 

This vertical-looking pattern forms as a stock surges 100% to 120% in four to eight weeks. The stock then corrects just 10% to 25% in price for only three to five weeks. The ideal buy point is the high of the flag plus 10 cents.

The base shows just a small portion of investors taking profit; others are impatient to press ahead.

It's often associated with vibrant companies with new products that can change the world.

 

High, tight flag bases clearly make this statement: "We're up-and-coming."

 

"This is the strongest of patterns, but it's also very risky and difficult to interpret correctly. Many stocks can skyrocket 200% or more off this formation," ~ William J. O'Neil

 


 

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