You are on page 1of 4

Bullish Flag

Scanning for the Bullish Flag continuation pattern is quite easy, below are a
few scans for TC 2000 that we have put together by either myself or members
of Hit & Run Candlesticks.

Psychology behind the Flag Formation Coming soon

TC2000 Code:
PCF #1 MAXC4 <= H4 and MAXH4 <= H4 and MINH6.4 * 1.10 < H4
andMINL6.4 * 1.05 < MINL4 and C >= AVGC10 and
XAVGC8 >= AVGC20 andAVGC20 > AVGC20.8 and MAXV6.1 > AVGV50 * 1.25

PCF #2 C7 > O7 and L6 > O7 and C6 > O7) and (C5 <= H6 and C5 >= L6) and
(C4 <= H6 and C4 >= L6) and (C3 <= H6 and C3 >= L6) and (C2 <= H6 and
C2 >= L6) and (C1 <= H6 and C1 >= L6) and (C >= AVGC20)

PCF #4 C <= MAXH3.1 AND C3 >= C12 * 1.1 AND (MAXO3 - MINC3) < C * 0.04
AND (MAXC3 - MINC3) < C * 0.04 AND (MAXC3 - MINO3) < C * 0.04 AND
(MAXO3 - MINO3) < C * 0.04
By Ed Carter
I've actually written at least 4 different versions of a Flag Scan, based on input
from 4
different people...each having their own different understanding/usage of Flags.
So they vary
quite a bit. I honestly can't recall which was given to Rick.
What I use is a scan I wrote that combines the 4 other Flag scans and gives me
all the
results. I can then visually sift through which I like best. Here is that "All Flags Combo
Scan"...
( (MAXH3<MAXH6 AND MAXH6<MAXH9 AND MAXH9<MAXH12 AND
MINL12>MINL20 AND MINL20>MINL30 ANDAVGV3 < AVGV3.5 AND
MAXV5 < MAXV5.5) OR

(XAVGC3.5 > (XAVGC3.10 * 1.07) AND MAXH3.5 > (MAXH3.10 * 1.07) AND
MAXL3.5 > (MAXL3.10 * 1.07) AND XAVGC3 < XAVGC3.5 AND AVGV3 <
AVGV3.5 AND MAXV5 < MAXV5.5) OR
(XAVGC3.8 > XAVGC3.15 AND MAXH3.8 > (MAXH3.15 * 1.07) AND MAXL3.8 >
(MAXL3.15 * 1.07) AND XAVGC3 < XAVGC3.8 AND MINL3 < MINL3.8 AND
MAXH3 < MAXH3.8 AND AVGV3 < AVGV3.5 AND MAXV5 < MAXV5.5) AND C <
MAXC14.1 AND C > C1 ) OR
( MAXC4 <= H4 and MAXH4 <= H4 and MINH6.4 * 1.10 < H4 and MINL6.4 *
1.05 < MINL4 and C >= XAVGC8 and XAVGC8 >= AVGC20 and
AVGC20 > AVGC20.8 ) OR
( (MAXH3<MAXH6 AND MAXH6<MAXH9 AND MAXH9<MAXH12 AND
MINL12>MINL20 AND MINL20>MINL30 AND AVGV3 < AVGV3.5 AND
MAXV5 < MAXV5.5) OR
(XAVGC3.5 > (XAVGC3.10 * 1.07) AND MAXH3.5 > (MAXH3.10 * 1.07) AND
MAXL3.5 > (MAXL3.10 * 1.07) AND XAVGC3 < XAVGC3.5 AND
AVGV3 < AVGV3.5 AND MAXV5 < MAXV5.5) OR
(XAVGC3.8 > XAVGC3.15 AND MAXH3.8 > (MAXH3.15 * 1.07) AND MAXL3.8 >
(MAXL3.15 * 1.07) AND XAVGC3 < XAVGC3.8 AND MINL3<MINL3.8 AND MAXH3
< MAXH3.8 AND AVGV3 < AVGV3.5 AND MAXV5 < MAXV5.5) )

Bullish Pennant
Image that you are standing at ground level and looking at a triangle on a pole that rises to
the sky. The top of the triangle is sloping down. This visual is what you see on a stock chart
when price rises (and breaks out of a resistance level). This resistance level then becomes a
support level (ground level) and moves higher in an up trending manner. This price action
forms the pole.
Price reaches a level where profit taking begins and starts to move lower. Price moves
lower in a lower high/higher low manner within a triangle pattern. Price moves within a
large range to a small range virtually compressing into the point of the triangle. This
triangle is a pennant formation. Traders refer to the price action within the triangle as a
consolidation.
Typically, in an uptrend the top of a bullish pennant is down sloping.This makes sense since
in an uptrend, profit taking will result in lower prices as traders sell stock.
A Bullish Pennant looks like this

The flagpole is measured from the price breakout point to the highest price point before
price starts to pull back. The blue dotted line represents resistance or the top of a price
consolidation area. The flag pole starts when price moves above the resistance area which is
represented by the blue dotted line. Notice how the top of the bullish pennant slopes
downward.
The best way to illustrate a bullish pennant formation is by displaying it on a stock chart.
Below is an example of a bullish pennant on a daily chart.

On the chart above, price breaks out after a 13 day consolidation period. This breakout
point starts the beginning of the flagpole. Price advances sharply for 4 days and starts to
pull back. Price forms lower highs and slightly higher highs for 9 days. Price continues to
move in an increasingly narrow range forming the pennant. Notice how the upper and
lower lines of the pennant converge. Converging trend lines are an identifying feature of the
pennant.
Key points for the Bullish Pennant The bullish pennant is most significant when it appears after a sharp advance in price.

A pennant can form over one or more weeks. However, the pennant usually forms over a
shorter time frame than the flag formation.
Price highs move slightly lower and price lows move slightly higher. Drawing a trend line
connecting price highs and then another connecting price lows forms two converging lines
which is an identifying feature of the pennant.
A drop in closing price that breaks the lowest low of the pennant signals a violation of the
pennant formation and possibly a change in trend.
Traders wait for a breakout from the pennant to confirm that the preceding trend is still in
play. It is best not to anticipate a breakout one way or the other. Some consider the pennant
area to be a no trade zone.
Pennant Trade Review: Click Here Coming Soon

You might also like