How to Trade the Flag Stock Indexes Chart Pattern

There are two types of indices trading flag stock indexes chart patterns - bullish flag stock indexes chart pattern and bearish flag stock indexes chart pattern.

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

Bull Flag Indices Trading Chart Pattern

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

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

The bull flag stock indexes chart pattern occurs at halfway point of a bullish upward indices trend and after a breakout a similar move equal to the height of the flagpole is expected.

Indices Trade a Bull Flag Indices Trading Chart Pattern?

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

Bear Flag Indices Trading Chart Pattern

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

Indices Trade a Bear Flag Indices Trading Chart Pattern?

The bear flag stock indexes chart pattern above was just a resting period for the stock indexes trading market prior to more selling. The continuation stock indices signal was confirmed as the lower line of this pattern was broken to the downside.