Bull Flag Pattern

What the Bull Flag pattern means

The steep pole shows strong buying, and the gentle pullback shows profit-taking rather than real selling. Because demand is still in control, price tends to resume the original advance when it breaks above the flag.

How the Bull Flag is traded

• →Enter on a close above the upper flag boundary, ideally on rising volume.
• →The target is roughly the height of the pole added to the breakout point.
• →Stop goes below the low of the flag.
• →The cleanest flags drift down or sideways on shrinking volume.

Common mistakes

• ✕Confusing a deep, sloppy pullback with a tight flag.
• ✕Entering before the flag breaks, while it can still roll over.