Financial encyclopedia

Flag-shaped, fluctuating market entry strategy

Flag shape means that the price rises or falls sharply (flagpole) first, and then walks a short-term ascending or descending track (flag body) in the opposite direction. The shape is like a flag, which is divided into an ascending flag shape and a descending flag shape:

Flag-raising shape

When the price rises sharply (forming the flagpole position), a new dense area appears again. Connect the high and low positions of the dense area respectively and draw two parallel and downward inclined straight lines, which will form the flag-raising shape. When the grid price breaks through the dense area, it is a good opportunity for friends to enter the market.

falling flag

When the price drops sharply (forming the flagpole position), an upward-inclined dense area appears, which is the descending flag shape. After the flag appears, the price falls through the dense area, which is a good time for Danyou to ship.

According to the height of the flagpole, the rising/falling range can be measured, so as to set the goal!