Bull Flag
Also known as: Bullish Flag
A short, slightly downward-sloping consolidation (the “flag”) after a steep rally (the “flagpole”). The trend usually continues upward.
How it forms
An impulsive rally is followed by an orderly pause in a narrow, slightly falling channel with declining volume. It is a breather, not a trend change.
How it is typically traded
On a break above the upper flag boundary, ideally with rising volume.
The length of the flagpole, projected upward from the breakout point.
Below the low of the flag.
Where & when – and the limits
Works best in strong trends right after the impulse. If the flag runs too long or too deep (more than roughly half the pole), the pattern loses meaning.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
Learn more in the academy