Pennants and flags are both more likely to be visible within the middle
portion of the primary trend. They also tend
to last around two weeks on
average before merging once again with the primary trend line. They are
frequently
associated with falling volume, which means that if you see a
flag or pennant with volume that isn’t
dropping, then what you are likely
really seeing is a reversal.
Head and shoulders
If you are looking for indicators of the length of a particular trend, then the
head and shoulders formation of three peaks within the price chart tends to
indicate an overall bearish pattern moving forward. The peaks to either side
of the main peak should generally be a little small than the main peak which
makes up the head. The price is the neckline in this scenario and when it
reaches the right shoulder you can generally
expect the price to drop off
steeply.
This formation most frequently occurs when a large group of traders ends
up holding out for a final price increase after a long run of gains has already
dropped most traders out of the running. If this occurs and the trend
changes, then the price will fall and the head
and shoulders will become
visible. It is also possible for the opposite to appear in the form of a reverse
head and shoulders. If you see this pattern then you can expect the price to
soon be on the rise.