How Do I Trade a Flag Pattern

There are two different types of oil trading flag patterns - bullish flag chart pattern and bearish flag chart pattern setup.

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

Bull Flag Crude Oil 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 the price til the price breaks out. Generally, the bull flag oil pattern will not be perfectly flat but it'll be sloping.

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

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

Oil Trade a Bull Flag Trading Pattern?

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

Bear Flag Crude Oil Pattern

This bear flag pattern is found in a Oil Trading downward trend. The bear flag chart pattern is a oil 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, & it looks like a small channel.

Oil Trade a Bear Flag Trading Pattern?

The bear flag pattern above was just a resting period for the market prior to more selling. Continuation signal was confirmed as the lower line of this pattern was broken to the downside.