How Do You Identify Flag Chart Pattern? - How Do I Analyze a Flag Pattern?

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

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

Bull Flag Chart Pattern

This bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for forex price until the price breaksout. In general, the bull flag chart pattern will not be perfectly flat but it will be sloping.

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

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

Bull Flag Chart Pattern - How Do You Trade a Bull Flag Forex Pattern?

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

Bear Flag Chart Pattern

This bear flag chart pattern is found in a Forex downtrend. The bear flag chart pattern is a trend continuation pattern where the price retraces slightly with a narrow price action which 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 chart pattern has highs and lows which can be connected by small lines which are parallel, and it looks like a small channel.

Bear Flag Chart Pattern - How Do You Trade a Bear Flag Forex Pattern?

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