Earnings flag on EL

Flags are areas of tight consolidation in price action showing a counter-trend move that follows directly after a sharp directional movement in price. The pattern typically consists of between five and twenty price bars. Flag patterns can be either upward trending (bullish flag) or downward trending (bearish flag). The bottom of the flag should not exceed the midpoint of the flagpole that preceded it. Flag patterns have five main characteristics:

The preceding trend
The consolidation channel
The volume pattern
A breakout
A confirmation where price moves in the same direction as the breakout


The bull flag is much more predictable when it is created out of good earnings.

Game plan is to buy the break of resistance and follow the trend using the 9SMA as a trailing stop loss.


Source: Investopedia