What's Bull Flag Pattern?
Indices Identify a Bull Flag Pattern in Indices Trading
The Best Patterns Tutorial Guide for New Traders - How to Identify & Trade Bull Flag Chart Pattern
Indices Setup Patterns for Intra-day Trading - Patterns Lesson Course
This Bull Flag trading patterns charts guide explains how to identify setups - spotting chart setups is the first step when it comes to learning how to trade with Bull Flag chart setups in Indices.
Bull Flag price setups commonly form on charts & this chart pattern setup analysis lesson explains how to trade and analyze charts using Bull Flag setups.
Bull Flag Pattern
This bull flag chart pattern forms what looks like a rectangle. The rectangle is formed by 2 parallel lines that act as support & resistance for the market price til the price breaks out. In general, the bull flag trading setup won't be perfectly flat but it will be sloping.
The bull flag chart pattern setup is found within a upwards trend. In this bull flag chart pattern is a continuation pattern where the trading market pulls back slightly, it is therefore a slight retracement with narrow price action that has a slight downward tilt. The technical buy point is when the price penetrates the upper line of the bull flag pattern. Flag portion has highs & lows that can be connected by small lines which are parallel, giving it what resembles a small channel.
The bull flag chart pattern occurs at halfway point of a bullish upwards trend and after a break out a similar move equivalent to the height of the flagpole is expected.
What's Bull Flag Pattern?
The bull flag chart pattern above was just a resting period as the trading market gathered strength to break-out & move higher. Bull flag chart pattern indices continuation signal was confirmed as the upper line was broken to the upside.
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