Flax after a steep price movement also known as Blackpool or simply pool price consolidates in the trading
range gets narrower within that trading range.
Price reaches highs and lows touch in areas of resistance and support the flat pattern becomes very
visible in the chart.
When we drove two parallel trend lines that touch the highs the lows the trend lines are literally barriers
to stop price from rising or falling when price increases it reaches the upper trendline resistance
and fails to move above it.
Price would move back down when price reaches the lower trendlines support and first move below it price
will move back up again.
The upward trend line should touch or come near to patchin some of the highs within the trading range.
The lower trend line should touch or company here to in some of the lows within the same trading range.
The upper trend line represents resistance in the lower than in line or represents support during the
course of the flood formation.
Price will support and resistance several times and there should be a decrease in volume activity.
The consolidation time for flat patterns is no longer than four weeks.
If it lasts longer than that we consider those formations trend channels which could indicate a short
or medium term trend reversal.
At times the flat pattern will have a horizontal trajectory which is what we call Kangal more commonly
or wherever the flag will be slanted in the opposite direction of the primary trend.
In other words if Price were in an uptrend the slope of the flag will be dampened the that flag is called
ball flag on the other hand.
If Price waiting the downtrend the slope of the flag will be in optimum this type of Flon is called
by flag.