How to Oil Trade a Flag Pattern

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

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

Bull Flag Crude Oil Trading Chart Pattern

This bull flag crude oil chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the crude oil price until the crude oil price breaks out. Generally, the bull flag oil trading pattern will not be perfectly flat but it will be sloping.

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

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

Oil Trade a Bull Flag Oil Trading Chart Pattern?

The bull flag crude oil pattern above was just a resting period as the crude oil market gathered strength to break out and move higher. The bull flag crude oil 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 Trading Chart Pattern

This bear flag crude oil pattern is found in a Oil Trading downward oil trend. The bear flag crude oil chart pattern is a oil trend continuation pattern where the crude oil price retraces slightly with a narrow crude oil price action which has a slight upward tilt. The technical sell point is when the crude oil price penetrates the lower line of the inverted bear flag crude oil chart pattern. The flag portion of this crude oil chart pattern has highs and lows which can be connected by small lines which are parallel, and it looks like a small channel.

Oil Trade a Bear Flag Oil Trading Chart Pattern?

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