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The high-and-tight flag in action
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AT-July 2006-2
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Learn how to recognize a high-and-tight flag pattern a congestion in a strongly trending stock and how to trade it using a volatility stop.
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Detailed Description
A high-and-tight flag (HTF) is the bestperforming chart or event pattern of the 70 patterns I have studied. It is a consolidation pattern in a strongly uptrending stock that is typically followed by another price rise. Of 307 HTFs examined, only 25 failed to rise at least 20 percent after the breakout of the pattern and the average rise was 69 percent.
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