Flag shape usually appears in the fast-fluctuating market, and the trend is like a flag hanging on the top of a flagpole. The stock price goes through a parallelogram consolidation movement slightly opposite to the original trend, which is the flag consolidation form. Flag forms can be divided into flag-raising and flag-lowering. After a brief surge, the stock price was blocked from falling after the volume was enlarged. After a small callback, it began to rebound, and the stock price fell back without hitting a new high. Connecting the high points and low points of this slightly downward consolidation movement respectively, we can draw two parallel lines and a parallelogram inclined downward, which is the upward flag-raising movement. Falling the flag is just the opposite. Short-term stock prices formed a small upward consolidation movement. Connecting the high point and the low point respectively, you can draw two parallel lines and an upward inclined parallelogram, which is the flag-dropping movement.

Formation mechanism:

In the middle of the rapid straight-line rise, the volume of transactions gradually enlarged, and finally set a short-term record. Earlier, stock holders made a profit by selling shares, and then made a profit. The rise encountered great resistance, and the power to chase high temporarily weakened. The share price began to fall slightly. However, most investors are still full of confidence in the market outlook, so the decline rate is limited and the trading volume is reduced, reflecting the decreasing selling power of the market in autumn. After a period of clearing and floating, the stock price rose in volume at the end of flag sorting, breaking through the downward pressure line of short-term high point in one fell swoop, and the stock price once again erected the flagpole like the moving speed before the flag was formed, which was the breakthrough of flag raising. In the downward trend, the flag shape floats upward when the figure is upside down. In the rapid linear decline, the volume of transactions is enlarged to a low point, and then it begins to rebound when it encounters support, but the rebound rate is not large. This is because the bulls in the short market are fighting in fantasy, but they are not recognized by most investors in the market. After a period of flag sorting, the stock price finally broke through the continuous support line of the low point, and the stock price continued to fall.

Characteristic conditions:

1) In the process of flag formation, the turnover showed an obvious gradual decline, but when it rose, the micro-quantity-price coordination under the floating flag form was relatively healthy;

2) When the flag breaks up and down, the turnover will increase sharply, which is different from other finishing forms;

3) In the flag shape, if the transaction volume is irregular or not decreasing in turn, it should be noted that this is not a flag arrangement, but often a reverse form, that is, the flag is broken up and the floating flag is broken up;

4) From the time point of view, flag sorting is generally completed within three weeks, and it is necessary to guard against the above reversal after three weeks;

5) Flag shape is a trend consolidation form, which generally does not change the original trend operation, but it usually indicates that the original upward trend has entered the second half, and it is necessary to prevent the turn after the last rise; Lowering the flag shape means that the bear market has just begun, and there may be a big decline in the market outlook.

Operation strategy:

The best place to buy and sell the national flag is when the national flag breaks through the pressure line of ups and downs and confirms the withdrawal.