Flag Patterns

What are they, and do DTF, RT Concepts and DEM apply to flags?

A flag a pattern that our system best describes as a diagonal box. A flag is making lower lows and lower highs, so it would be correct to refer to flags as downtrends, or downtrend channels. Flags can make three, five or even seven lower lows before making a higher high.

In Dynamic Trend Following, a flag is a consolidation into the leading moving average. A flag is nothing but a diagonal rectangle, balance, and price moves from boundary to boundary, just like it does in horizontal boxes.

Here is an example. The monthly EMA50 is leading, and price has been flagging into it all through the 2022 bear market. When price broke above, it set up a box and confirmed acceptance above the 2021 highs.