Trade Stock Indices

How to Analyze Flag Pattern Chart Setup

Stock Index Trade Flag Pattern

There are 2 types of flag patterns - bullish flag stock chart pattern and bearish flag stock chart pattern setup.

To trade these stock chart setups a trader requires to learn about the technical analysis of bull flag stock chart pattern and bear flag stock trading pattern.

How to Analyze Flag Pattern

Bull flag stock chart pattern forms what resembles a rectangle pattern setup with a small downwards tilt. The rectangle is formed & shaped by 2 parallel lines that act as support level and resistance level for the stock price until the stock trading price breaks out. In general, the bull flag stock setup won't be perfectly flat but it will be sloping and having a small tilt.

The bull flag stock pattern setup is found within an upwards stock trend. Bull flag stock chart pattern is a continuation stock chart pattern where the stock price retraces a little, bull flag stock pattern is hence a slight stock price retracement with narrow stock price action which has a slight down-ward tilt. The buy signal is derived & generated when the stock price penetrates upper line of bull flag stock pattern. The flag part of the bull flag stock chart pattern has stock price highs & stock trading price lows which can be connected together by small lines that are parallel, giving it what resembles a small channel - flag.

The bull flag stock setup occurs at half-way point of a bullish upwards trend & after a price break-out a similar move equal to the height of the flag pole is expected.

How to Interpret Flag Pattern Setup and Pattern

How Do I Read Flag Setup - How to Trade Flag Pattern?

The bull flag stock chart pattern shown above was just a resting period as the market gathered energy to break out and move higher. The bull flag stock chart pattern continuation stock trading signal was confirmed when the upper line of this Bull flag stock pattern was broken to the up-side after which the stock price continued heading upward.

Indices Trade Flag Pattern

This bear flag stock setup is found in a downward stock trend. The bear flag stock chart pattern is a market trend continuation pattern where the stock price retrace slightly/a little with a narrow stock price action which has a slight upwards tilt. Sell stock signal is derived & generated when the stock price penetrates lower line of inverted bear flag stock chart pattern. The flag portion of this bear flag stock chart pattern has stock price highs & stock trading price lows that can be linked together by small lines that are parallel, giving the bear flag stock trading pattern setup the look of a small channel - inverted flag.

How Do I Read Flag Pattern Chart Setup? - How Can You Interpret Flag Pattern Chart Setup?

How Do I Read Flag Pattern - How to Trade Flag Pattern?

The bear flag stock pattern above was just a resting phase for the market trend prior to more selling & resuming of the downward stock trend. The continuation stock signal from the bear flag stock chart pattern was confirmed when the lower line of this bear flag stock chart pattern was broken to the down-side after which the stock price headed downwards.

Interpret Flag Pattern

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