Trade Stock Indices

How to Interpret Flag Pattern Chart Pattern

Stock Indices Trade Flag Pattern

There are two 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 looks like a rectangle pattern setup with a slight downward tilt. The rectangle is formed by two 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 trading setup won't be perfectly flat but it will be sloping and having a slight 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 slightly, 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 gets generated when the stock price penetrates the upper line of the bull flag stock pattern. The flag portion of the bull flag stock chart pattern has stock price highs and stock trading price lows which can be connected together by small lines that are parallel, giving it what looks like a small channel - flag.

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

How to Read Flag Pattern Chart Setup

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

The bull flag stock chart pattern shown above was just a resting period as the market gathered momentum to break out & 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 upside 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 with a narrow stock price action which has a slight upwards tilt. Sell stock signal gets generated when the stock price penetrates the lower line of the inverted bear flag stock chart pattern. The flag portion of this bear flag stock chart pattern has stock price highs and 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 Do You Analyze Flag Pattern Chart Pattern?

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

The bear flag stock pattern above was just a resting period 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 downside after which the stock price headed downwards.

Interpret Flag Pattern

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