Continuation Patterns · Bullish
Bull Flag
A sharp rise, then a small downward-sloping channel, then a break higher.
The sharp rise is the pole. The flag is a brief drift against that rise. The continuation example is a close above the flag.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- A near-vertical move creates the pole.
- The next swings drift slightly down or sideways in a tight channel.
- The example continuation is a close above the channel.
Market context
The flag should be small relative to the pole. A large retracement is a different pattern.
Entry example
An example entry is the break of the flag high.
Stop-loss example
An example stop is below the flag.
Target example
A common teaching method adds the pole height to the break. That is an example, not a result.
Common mistakes
- Drawing a flag around a retracement that gives back most of the pole.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.