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all right letamp;#39;s give you an example of a flag pennant formation weamp;#39;re going to use huet Packard between March of 1999 and September of 1999 now for a flag formation to take place youamp;#39;ve got to have a stock coming out of a base which we do right through here and uh the breakout point is where that stock crosses through the point of resistance which is the prior high now this forms the floor of our flag formation so youamp;#39;re going to draw a line straight across from that breakout point and then obviously after the breakout we had a nice uptrend intact with this stock which forms our flag pull by connecting these spots or the top right there through the prior support of break or the prior level of breakout which brings you to your flag formation so what you do is you just create a channel by connecting the three highest points on the top and then the three highest or the three lowest points on the bottom and youamp;#39;ll see a flag formation take place here
