A chart pattern named for the fact that its initial formation (the flag pole) takes place in a rapidly rising market. Once the pole is formed, a short period of consolidation results in a Series of bars in which the highs and lows decline at the same rate, forming a parallel downward-sloping channel. Technicians view a bull flag as a neutral indicator, so they will place orders above and below the trend lines drawn along the tops and bottoms of the flag and play the one that gets filled on the breakout. Compare to bear flag.
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Manufacturer's Shipments, Inventories, and Orders (M3)
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