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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

flag  

Definition 1.

A technical analysis term referring to a chart pattern created when a steep rise (or fall) is followed by trading in a narrow price range, followed by a steep rise (or fall). Some technical analysts believe that if a rise (or fall) precedes the "flag" then a rise (or fall) is likely to follow it.
 

Definition 2.

A technical charting pattern that looks like a flag with a mast on either side. Flags result from price fluctuations within a narrow range, they mark a consolidation before the previous move resumes.
 

Definition 3.

A pattern reflecting price fluctuations within a narrow range, generating a rectangular area on a graph both prior to and after sharp rises or declines.
 
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