To maximize returns, traders are on the lookout for stocks with the highest potential for rapid advances.
A High Tight Flag develops when a stock pauses after an explosive move, and then ultimately continues to see a substantial gain.
Identifying a High Tight Flag will lead you to a powerful trend.
What Is A High Tight Flag?
A High Tight Flag (HTF) is a technical pattern marked by a stock's rapid rise, followed by a brief period of price consolidation with minimal fluctuation before resuming its upward momentum.
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A Hight Tight Flag is formed when a stock:
Pay close attention to stocks that advance rapidly in a short amount of time, then resist any selling pressure as it corrects over a short period of time.
Once a stock breaks out of a High Tight Flag, it will accelerate with the same strength from before the consolidation.
Momentum Builds Upon Momentum
Make sure to focus on stocks that double in price in a short amount of time. This powerful price movement indicates that there is a huge demand for the stock.
Once profit taking begins, concentrate on any distribution that unfolds. As the stock consolidates over time, the most powerful stocks will resist any selling pressure.
Traders are unwilling to sell the strongest stocks.
Examples
Symbol: PTON
Company: Peleton Interactive
Year: 2020
Click on the chart above to make it bigger.
After the 2020 correction, PTON surged over 180% and formed an HTF. The 22% deep base lasted just under five weeks. When the price moved out of the tight range, it continued to advance another 170%.
Symbol: META
Company: Meta Platforms
Year: 2023
Click on the chart above to make it bigger.
META formed an HTF after a 120% move off its 2022 low. A 15% deep base formed over the next five weeks. Once the stock moved above the range it continued to rise another 74%.
Symbol: CELH
Company: Celsius Holdings
Year: 2020
Click on the chart above to make it bigger.
When CELH broke out into all-time highs it moved 130% in 11 trading days then formed a High Tight Flag. The 18.5% deep base only lasted 4 weeks, then the stock moved another 163%.
Screen For High Tight Flags
Enter “High Tight Flag” in the search or navigate to the Technical Patterns menu.
Click “Yes” to filter for all stocks in an HTF.
The most powerful High Tight Flags are formed in stocks that have institutional quality characteristics. Consider screening for this technical indicator with your favorite liquidity criteria.
Key Takeaways
High Tight Flags are formed during a brief pause in the middle of huge price moves.
Focus on stocks exhibiting explosive momentum followed by tight consolidation.
As soon as the price reconfirms higher, the stock will continue its rapid advance.
