The Flag & Pole pattern is a powerful bullish continuation setup. In Sharda Cropchem Ltd, currently trading at ₹901, this pattern suggests potential upside if the breakout sustains, with defined target and stop-loss levels.
📈 What is a Flag & Pole Pattern?
1. Pole: A sharp, vertical price rise driven by strong buying momentum.
2. Flag: A short consolidation phase where price moves sideways or slightly downward, resembling a flag on the pole.
3. Breakout: Once price breaks above the flag, the prior uptrend often resumes with strength
🔑 Importance of the Pattern
1. Continuation Signal: Indicates that the prevailing bullish trend is likely to continue.
2. Clear Risk-Reward Setup: Provides well-defined entry, stop-loss, and target levels.
3. Widely Used: Traders across equities, forex, and commodities rely on it for short- to medium-term trades.
🛠️ How to Trade the Pattern
Entry Point:
Enter when price breaks above the flag resistance with strong volume confirmation.
Target Strategy:
Measure the length of the pole (initial sharp rally).
Project the same distance upward from the breakout point.
Example: If the pole is ₹150 long, add ₹150 to breakout price for target.
Stop-Loss Strategy:
Place stop-loss just below the flag’s lower boundary.
This protects against false breakouts while keeping risk limited.
📝 Key Takeaways
Flag & Pole = Bullish Continuation.
Entry on breakout, target = pole length, stop-loss below flag.
Sharda Cropchem shows this setup, offering a strong risk-reward opportunity if breakout sustains.
📈 What is a Flag & Pole Pattern?
1. Pole: A sharp, vertical price rise driven by strong buying momentum.
2. Flag: A short consolidation phase where price moves sideways or slightly downward, resembling a flag on the pole.
3. Breakout: Once price breaks above the flag, the prior uptrend often resumes with strength
🔑 Importance of the Pattern
1. Continuation Signal: Indicates that the prevailing bullish trend is likely to continue.
2. Clear Risk-Reward Setup: Provides well-defined entry, stop-loss, and target levels.
3. Widely Used: Traders across equities, forex, and commodities rely on it for short- to medium-term trades.
🛠️ How to Trade the Pattern
Entry Point:
Enter when price breaks above the flag resistance with strong volume confirmation.
Target Strategy:
Measure the length of the pole (initial sharp rally).
Project the same distance upward from the breakout point.
Example: If the pole is ₹150 long, add ₹150 to breakout price for target.
Stop-Loss Strategy:
Place stop-loss just below the flag’s lower boundary.
This protects against false breakouts while keeping risk limited.
📝 Key Takeaways
Flag & Pole = Bullish Continuation.
Entry on breakout, target = pole length, stop-loss below flag.
Sharda Cropchem shows this setup, offering a strong risk-reward opportunity if breakout sustains.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.