The falling flag shape is when the currency price starts to adjust after a rapid decline, forming a slightly upward sloping rectangular form. As shown below:
The technical characteristics of the falling flag
(1). Appears in a falling market
(2). The price of the currency fell rapidly at an almost vertical angle, forming a flagpole. Then it began to rebound, forming a price-intensive trading area with little fluctuation and a slight upward slope. Connect the highs and highs, lows and lows of the transaction area respectively, and two parallel lines can be drawn to form a flag-shaped flag.
(3). The trading volume decreases significantly and gradually during the formation of the flag.
The technical meaning of the falling flag
Below the falling flag, bearish and sell in the market outlook
Example of BTC real market
In the BTC 9-18 market, BTC walked out of a falling flag from $48,000 to $46,000, and then fell below the lower line of the flag, falling from $46,000 to about $40,000.
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