How Do You Analyze/Interpret Bull Flag Setup?
How Do You Trade Bull Flag Setup?
Bull flag setup forms what resembles a rectangle pattern with a modest downward tilt. The rectangle is formed by two parallel lines that act as support level & resistance level for the price until the price breaks-out. In general, the bull flag chart pattern will not be perfectly flat but it will be sloping and having a modest tilt.
The bull flag pattern is found within an upward trend. Bull flag setup is a continuation pattern setup where price retraces a little, bull flag chart pattern is hence a modest price pull back with narrow price action which has got a modest downwards tilt. The buy signal is generated/derived when price penetrates the upper line of the bull flag chart pattern. The flag part of the bull flag pattern setup has price highs and price lows that can be connected by small lines that are parallel, & it resembles a small channel - flag.
The bull flag pattern setup occurs at half-way point of a bullish upward trend & after a price breakout a similar move equivalent to the height of the flag-pole is expected.
How Do I Analyze Bull Flag Pattern?
The bull flag chart pattern shown above was just a resting period as the market gathered momentum to break out & move higher. Bull flag chart pattern continuation signal was confirmed when the upper line of this Bull flag chart pattern was broken to the up-side after which the price continued to move up-ward.
How Do You Analyze Bull Flag Pattern?
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