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okay lets look at our example of a flag continuation pattern in this case were going to use hewlett-packard from March 1999 through April 1999 and let me give you an idea how we would have recognized this and traded it the beginning of a flag continuation pattern is when a stock breaks out of a base and goes through resistance which is right through this period of time this is where the stock breaks out this is the beginning of the uptrend coming out of a base you can see theres a very docHub move to the upside okay then what youre going to do is youre going to take the high of that move alright and youre going to create the flagpole which would be the high right through here directly down to your level of support and then youve got a descending channel that starts at that point which is very important it needs to be a descending channel alright which is a sign of a flag so heres your descending channel and then your resulting breakout point or your by point for a flag co
