It's not "the way it does" in terms of a particular waving pattern. The colors of the flag itself, however, are symbolic:
* Green: Represents hope and the country's lush landscapes.
* White: Represents faith and purity.
* Red: Represents the blood shed for Italian unity and the courage of the Italian people.
These colors were first adopted by the Italian Republic in 1946, although they had been previously used by Italian revolutionaries and nationalists in the 19th century.
The vertical design of the flag is simple and easily recognizable, which is a common feature of national flags around the world.