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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (38519)	1/29/2000 1:07:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

Joh Tara: What's more interesting to me is the inverse flag Jan 21-26. You failed to mention what indices or issue you are referring. I assume by inverse flag you mean bear flag. Flags are nothing more than a counter trend consolidation pattern. They can be bearish or bullish depending on the trend they start from. There have been plenty of flag formations both bullish and bearish over the last few years on several indexes. During the last major correction in 98, I pointed out several flags during the decline. Donald Sew referred to them as stair steps. Consolidation patterns come in the form of flags, pennants, rising or falling wedges, triangles and rectangles. Most are pretty reliable indicators on a percentage basis with rectangles being the least. BUT, they have to be drawn correctly....this is often where most folks err! Regards, LG