#3 JULY 7, 2011 FLAG PATTERN FORMED AFTER VERTICAL RALLY AS BULLISH SIGNAL
![](https://i0.wp.com/jackschwager.com/wp-content/uploads/2019/10/chart-32.png?resize=731%2C691&ssl=1)
A tight flag pattern formed after a near vertical move usually tends to result in a continuation of the move. In this case there were two successive flag patterns. I was long XME puts and thought about buying copper as a hedge, but couldn’t bring myself to do the trade, even though I know this is a reliable pattern. The market immediately rallied. Have to pay more attention to this pattern in future.
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