How Do I Interpret Bull Flag Chart Pattern?

How to Read Bull Flag Chart Pattern

Bull flag pattern forms what looks like a rectangle pattern with a slight downward tilt. The rectangle is formed by two parallel lines that act as support level & resistance level for the gold price until the gold price breaks out. Generally, the bull flag pattern won't be perfectly flat but it will be sloping and having a slight tilt.

The bull flag pattern is found within an upward xauusd trend. Bull flag pattern is a continuation pattern where the price retraces slightly, bull flag pattern is therefore a slight gold price retracement with narrow gold price action which has a slight downward tilt. Buy signal is generated when the price penetrates the upper line of the bull flag pattern. The flag portion of the bull flag pattern has gold price highs & gold price lows which can be connected together by small lines which are parallel, making it look like a small channel - flag.

The bull flag pattern occurs at halfway point of a bullish upwards xauusd trend & after a gold price break-out a similar move equivalent to the height of the flagpole is expected.

Analyze Bull Flag Chart Pattern? - How Do You Analyze Bull Flag Chart Pattern

The bull flag pattern shown above was just a resting period as the gold market gathered momentum to break out & move higher. The bull flag pattern continuation xauusd signal was completed when the upper line of this Bull flag pattern was broken to the upside after which the gold price continued to move upward.

How Do You Interpret Bull Flag Chart Pattern