Quote:
Originally Posted by rds1933
Hi, Dave,
It was so nice of you to have responded to my query. I felt a triffle guilty for not having thanked you for the invaluable service being rendered by you to educate traders/ investors like me through your basic course in technicals as also other aspects including the futures. It was surely non-civil on my part not to have expressed my feeling of gratitude. I do this now and do this profusely. And, thanks for extending welcome for joining the community,
It appears, the query raised in the second paragraph - whether a flag formation remains classified as one even when the lower free end on the right touches or crosses the low of the flagpole - could not be touched upon in your mail. Shall be grateful, if you could do that now.
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Hi rds1933,
No worries I am glad you like the site and appreciate your comments.
As most traders identify a flag pattern as a quick run up and then a consolidation I would not think that when price touches or breaches the bottom of the flagpole that this would still be considered a flag. My reasoning here is that at this point it is no longer a consolidation but a retracement of the previous move which formed the flagpole.
If there are other thoughts on this please feel free to post them below.
Best Regards,
Dave