How Do I Analyze Bull Flag Chart Pattern?

How Do You Trade Bull Flag Chart Pattern?

Bull flag pattern forms what looks like a rectangle pattern with a slight downwards tilt. The rectangle is formed by two parallel lines that act as support level & resistance level for 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 slight tilt.

The bull flag pattern is found within an upwards trend. Bull flag setup is a continuation pattern setup where price retraces slightly, bull flag chart pattern is hence a slight price pullback with narrow price action which has a slight down ward tilt. The buy signal is generated when price penetrates the upper line of the bull flag chart pattern. The flag portion of the bull flag pattern setup has price highs and price lows that can be connected by small lines that are parallel, & it looks like a small channel - flag.

The bull flag pattern setup occurs at halfway point of a bullish upward trend & after a price breakout a similar move equal to the height of the flagpole is expected.

How Do You Interpret Bull Flag Pattern?

The bull flag chart pattern shown above was just a resting period as the market gathered momentum to breakout and move higher. Bull flag chart pattern continuation signal was completed when the upper line of this Bull flag chart pattern was broken to the upside after which the price continued to move up-ward.

How Do I Interpret Bull Flag Pattern?