Flag Pattern: What does it predict?

The "Flag" pattern is a technical figure commonly used for predicting market directions in cryptocurrency trading. This pattern appears after a sharp price movement and looks like a rectangle, tilted against the trend. It signals a short-term consolidation before the continuation of the previous trend. The key aspect to focus on is the trading volume, which should decrease during the formation of the flag and increase when the price breaks out of its boundaries. A breakout of the flag level often confirms the resumption of the trend, which serves as a signal for the trader to open a position.