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flag definition - finance
A technical analysis chart pattern that looks like a flag. A flag pattern shows upward price movement followed by declining price movement that is in a channel formation (meaning that is it constant and definite). The flag formation typically lasts just several weeks and shows a period of price congestion, or little movement, in prices. When the flag pattern ends, prices typically resume the direction of the trend that occurred before the flag.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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