Bull Flag Pattern
A bullish chart pattern resembling a flag on a pole, signaling continuation of an upward trend.
Definition
A bull flag is a technical chart pattern that occurs during an uptrend and signals a likely continuation of the bullish move. It consists of two parts: the "flagpole" (a sharp, strong price increase on high volume) and the "flag" (a period of consolidation where the price drifts slightly downward or sideways in a parallel channel on declining volume). The pattern is confirmed when the price breaks above the upper boundary of the flag on increased volume. The expected price target is typically measured by adding the length of the flagpole to the breakout point. Bull flags are among the most reliable continuation patterns and are used across stocks, forex, and crypto markets.
Related Terms
Technical Analysis
A method of evaluating securities by analyzing price charts, patterns, and statistical indicators.
TradingSupport and Resistance
Price levels where buying or selling pressure is strong enough to prevent further price movement.
TradingMoving Average
A technical indicator that smooths price data by creating a constantly updated average price over a specific period.
TradingVolatility
A statistical measure of the dispersion of returns for a given security or market index.