A flying plateau is a significant formation that occurs in the stock market when a stock experiences a sharp upward movement. Instead of immediately selling off, strong stocks will often take a break and form a sideways pattern within a narrow range. This pattern, known as a flying plateau, is considered to be very bullish, especially when formed on low trading volume. Visualize a 45-degree incline followed by a period of consolidation before resuming its upward trend. This rest period allows strong stocks to gather momentum before continuing their ascent.
