Flags and Pennants are powerful pattern in technical analysis. The are called ‘continuation patterns’ as the flag embeds prices that are consolidating in a range after a strong move up or down. Price is expected to continue in the direction of the prior move once it breaks out of the flag pattern. This is also why our Bull Flags screen is one of the most popular screens in our shared screens list.
Flag algorithm revisited
Because chartmill users seem to be liking flags, we revisited the detection algorithm to see if we could do some improvements. And we could! Not only are we detecting up to 3 times as many flags now, we also introduced some additional properties which you can filter on. We allow filtering based on:
We dedicated an entire tab to flag formations in the screener. So whether you like your flags High or Low, Tight or Wide, Short or Long, Bull or Bear, Flag or Pennant … we have got you covered!