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Formazione

Flag breakout: A practical

Flag breakout is seen where a sudden spike in prices is seen and after this sudden increase bulls who have entered earlier start exiting thier existing position and as such a consolidation occurs as can be seen in the shown chart. This Spike ( POLE ) and the consolidation ( FLAG ) gives rise to a fresh spike in prices once the consolidation in finished and fresh investors start entry in the stock. This pattern is a logical explanation to consolidation theory.
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