How to Trade the Flag Stock Indices Chart Pattern

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

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

Bull Flag Indices Chart Pattern

This bull flag stock indices 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 indices price until the stock indices price breaks out. In general, the bull flag stock indices chart pattern will not be perfectly flat but it will be sloping.

The bull flag stock indices chart pattern is found within a Indices Trading upward trend. In this bull flag stock indices chart pattern is a continuation stock indices chart pattern where the stock indices trading market retraces slightly, it is therefore a slight retracement with narrow stock indices price action that has a slight downward tilt. The technical buy point is when stock indices price penetrates the upper line of the bull flag stock indices 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 indices 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 Chart Pattern?

The bull flag stock indices chart pattern above was just a resting period as the stock indices trading market gathered strength to break out and move higher. The bull flag stock indices 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 Chart Pattern

This bear flag stock indices chart pattern is found in a Indices Trading downward indices trend. The bear flag stock indices chart pattern is a indices trend continuation pattern where the stock indices price retraces slightly with a narrow stock indices price action that has a slight upward tilt. The technical sell point is when the stock indices price penetrates the lower line of the inverted bear flag stock indices chart pattern. The flag portion of this stock indices 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 Chart Pattern?

The bear flag stock indices chart pattern above was just a resting period for the stock indices 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.