Among all the chart formation, which chart pattern is likely to display strong momentum on the breakout? Flag/Pennant pattern is a smaller structure & short term pattern. The price is having a higher probability to present a strong surge and momentum upon the breakout.
A good Flag/Pennant chart pattern normally starts with a strong rally on high volume (consists long green candle) and followed by a retracement with a diminishing/declining volume. Entry triggered when the price makes a breakout and moves higher than the previous long green candle.
A live example from today’s trading is the breakout of SCOMNET (0001). It had a rally and formed long green candle with strong volume on 6th April. The price retraced with small candles throughout the rest of the week, on a declining volume. Upon the breakout of RM0.655, it had completed the Flag formation breakout. It was triggered on M+ Wiz at 9.11am when the volume was elevated, under rule Resistance – Breakout with High Volume.
To Find out How to get M+ Wiz, Click here: #GetWiz
