For example, if the lowest price of the flagpole is $40, and the top of the flagpole is $65, and if the breakout entry point were $55, then the profit target a trader might expect to see achieved would be $80 ($55 plus $25). A more optimistic approach would be to measure the distance in dollar terms between the pattern’s high and the base of the flagpole to set a profit target. A technical chart pattern composed of two converging lines connecting a series of peaks and troughs. For instance, if there is a $4.00 difference and the breakout entry point is $55, the trader would place a profit target at $59. Profit Target: Conservative traders may want to use the difference, measured in price, between the flag pattern’s parallel trend lines to set a profit target. The upper line is the resistance line the lower line is the support line. An ascending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines. The two trend lines are drawn to connect the respective highs and lows of a. It is formed by two diverging bullish lines. A wedge is a price pattern marked by converging trend lines on a price chart. For example, if the upper trend line of the pattern is at $55 per share, and the lower trend line of the pattern is at $51 per share, then some price level below $51 per share would be a logical place to set the stop-loss order for a long position. An ascending broadening wedge is a bearish chart pattern (said to be a reversal pattern).
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