How to Trade the Flag Chart Pattern

There are two types of commodity trading flag chart patterns - bullish flag chart pattern and bearish flag trading pattern.

To trade these commodities chart patterns a trader requires to learn about the technical analysis of bullish flag chart pattern and bearish flag trading pattern.

Bull Flag Trading Pattern

This bull flag pattern forms what looks like a rectangle. The rectangle is formed by 2 parallel lines that act as support & resistance for the commodity price until the commodities price breaks out. Generally, the bull flag trading pattern will not be perfectly flat but it will be sloping.

The bull flag chart pattern is found within a Commodity upward trend. In this bull flag chart pattern is a continuation chart pattern where the commodities trading market retraces slightly, it is therefore a slight retracement with narrow commodity price action that has a slight downwards tilt. The technical buy point is when price penetrates the upper line of the bull flag chart pattern. Flag portion has highs and lows which can be connected by small lines which are parallel, giving it what looks like a small channel.

The bull flag chart pattern occurs at halfway point of a bullish upwards commodity trend and after a break out a similar move equivalent to the height of the flagpole is expected.

Commodity Trade a Bull Flag Chart Pattern?

The bull flag chart pattern above was just a resting period as the commodities trading market gathered strength to break out & move higher. The bull flag chart pattern commodity trading continuation commodities signal was confirmed as the upper line of this flag chart pattern was broken to the up side.

Bear Flag Trading Pattern

This bear flag chart pattern is found in a Commodity Trading downwards trend. The bear flag chart pattern is a trend continuation pattern where the price retraces slightly with a narrow price action that has a slight upward tilt. The technical sell point is when the price penetrates the lower line of the inverted bear flag chart pattern. The flag portion of this commodities chart pattern has highs and lows which can be connected by small lines that are parallel, giving it what looks like a small channel.

Commodity Trade a Bear Flag Chart Pattern?

The bear flag pattern above was just a resting period for the commodities trading market prior to more selling. The continuation commodities signal was completed as lower line of this pattern was broken to the down-side.