The High Tight Flag
Hight Tight Flag Summary, Psychology, and Examples
The high tight flag chart pattern is an extremely rare, bullish formation. Stocks that have amazing fundamentals generally form these. Despite the already big move before the base emerges, the breakouts from this pattern are explosive.
This pattern forms after a stock makes a gain of 100% or more in only 4 to 8 weeks and consolidates while pulling back less than 25% over the course of 3 to 5 weeks.
This pattern is so powerful because even though the stock has already gained more than 100%, doubling in value, the pullback is extremely shallow which tells us there is nobody interested in selling.
- The High Tight Flag Pattern is the rarest chart formation.
- The prior uptrend of 100% or more in 4-8 weeks.
- The base depth is 10-25%
- Buy point is the high of the flag plus 10 cents