High Tight Flags

For the best information on high tight flags, see Traderlion’s webpage on them here.

The basics are below:

A high tight flag is a powerful bullish chart pattern that occurs when a stock makes a dramatic upward move of at least 100-120% in 4-8 weeks, followed by a consolidation period where the stock consolidates in a tight range (usually 10-25%). This consolidation forms the “flag” part of the pattern.

Key characteristics of a high tight flag:

• Sharp initial price increase of 100%+ within 4-8 weeks
• Tight consolidation period forming a relatively flat or slightly downward-sloping flag
• Trading volume typically decreases during the consolidation phase
• Pattern suggests strong momentum and potential for further upward movement

This pattern is considered rare but can be highly reliable when properly identified. Traders often watch for a breakout above the flag portion as a potential entry point, as this can signal the continuation of the upward trend.

The pole can be less than 100% in some instances, these are low tight flags which have the characteristics of the high tight flag but didn’t reach that far. Doesn’t mean they can be any less powerful for your account if traded.