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What's Bull Flag Pattern?

Index Identify a Bull Flag Pattern in Stock Index Trading

Comprehensive Guide for New Traders on Identifying and Trading Bull Flag Setups

Intra-Day Index Patterns Setup - Trading Lesson Guide

This Bull Flag patterns guide covers chart setups for indices trading. Spotting them is the key first step in using these patterns.

Bull Flag price patterns often appear on charts, and this lesson tells you how to trade and look at charts using Bull Flag patterns.

Bull Flag Pattern

This pattern on a chart called a bull flag looks like a shape with four sides. The shape is made by a pair of lines that are parallel, which act as levels of price support and resistance until the price goes beyond them. Usually, the bull flag pattern will not be completely straight but will have a slope.

The bull flag pattern is found when prices are generally rising. In this bull flag pattern, which is a continuation pattern, the price goes back a little, so it's a small pullback with prices moving narrowly and slightly downward. The point to buy is when the price goes above the top line of the bull flag pattern. The flag part has highs and lows that can be connected with short lines that are parallel, making it look like a small channel.

The bull flag chart pattern shows up in the middle of a bullish upward trend, and after a break out, a similar move as tall as the flag-pole is anticipated.

What is Bull Flag Pattern? - What is Bull Flag Chart Setup?

What's Bull Flag Pattern?

The bull flag pattern was a pause. The market built strength to break out upward. The continuation signal came when price broke the upper line.

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