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The flag pattern is a continuation pattern and as suggested by the name these pattern form to look like a flag.

They have 2 parallel lines that are slightly on the slope. This slopes up in a downtrend and slopes down in an uptrend.

Flags generally appear in the midpoint of a trend, volume is normally low during the formation but high once it breaks out.


Please click on the chart below for larger image




If it's in an uptrend then it should breakout above the top parallel line and the opposite for a downtrend. 

These patterns only last a very short term say 1-2 weeks long. This is the time the shares build its strength.