High, Tight Flag:
A high, tight flag price pattern is rare and seldom occurs during a bull market.
It begins by moving approximately 100% to 120% in a very short period of time (four to eight weeks). This creates the flag pole.
Next, it corrects sideways, usually in three to five weeks, no more than 10% to 20%. This creates the flag. Because of its sharp vertical action, this pattern is often easier to spot on a weekly chart.
The ideal buy point would be 10 cents above the peak of this flag.
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.
