*Just a simple and (fairly) obvious charting-observation here ~
posted on
Mar 26, 2015 02:13PM
Hello all ~
*Just a simple and (fairly) obvious charting-observation here ~ And I realize, for most of you Pros, this is (boring) 'CHARTING 101' stuff ~ Nevertheless, I thought it worthy of board awareness, for Pro's AND 'fools' like me ~ smile!
Best regards, e.Digital Sioldier
*So, here's the e.Digital (1) year (+) 100 day MA (Moving Average) chart, *And JMHO here; but it appears to indicate(s); A textbook 'Flag Pole' AND (progressively-narrowing trading range) 'Pennant Flag'.. It may be worthy to add: As this (apparent?) Pennant possibly continues to narrow.. AND, the 100 day M.A. (possibly) grows closer & closer to 'meeting'(?) ..'crossing'? ..Intersecting? ..Yeah well, THAT's usually when things (JMHO again) may.. May.. MAY.. get interesting!
*SEE: FAR BELOW, ARTICLE RE: SUCH (possibly helpful?) CHARTING 'FLAG' INDICATORS ~
*Here's a brief explanation of these interesting 'Flag Pole & Pennant' Charting Indicators ~
*And I'll let you all (inividually) draw your own personal opinion(s) & conclusions, re: all-of-the-above & below potential possibilities ~
*Note: I make NO personl or public Future Prediction(s), with regard to ANY Future EDIG Perrformance and/or Share Price movement(s) ~ Just say'in.. e.Digital Soldier
*LINK: http://www.investopedia.com/university/charts/charts6.asp
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com
The flag and pennant patterns are two continuation patterns that closely resemble each other, differing only in their shape during the pattern's consolidation period. This is the reason the terms flag and pennant are often used interchangeably. A flag is a rectangular shape, while the pennant looks more like a triangle.
These two patterns are formed when there is a sharp price movement followed by generally sideways price movement, which is the flag or pennant. The pattern is complete when there is a price breakout in the same direction of the initial sharp price movement. The following move will see a similarly sharp move in the same direction as the prior sharp move. The complete move of the chart pattern - from the first sharp move to the last sharp move - is referred to as the flag pole.
The flag or pennant is considered to be flying at half-mast, as the distance of the initial price movement is thought to be roughly equal to the proceeding price move. The reason these patterns form is that after a large price movement, the market consolidates, or pauses, before resuming the initial trend.
The Flag
The flag pattern forms what looks like a rectangle. The rectangle is formed by two parallel trendlines that act as support and resistance for the price until the price breaks out. In general, the flag will not be perfectly flat but will have its trendlines sloping.
Figure 1: The flag pattern |
Figure 2: The Pennant |