Chart pattern
Bull Flag explained
A bull flag is a short pause after a sharp rise. A strong move up (the pole) is followed by a small, downward-sloping or sideways channel (the flag), and the pattern suggests the prior trend may resume.
How to spot it
- Find a sharp, near-vertical advance that forms the pole.
- Look for a tight, slightly downward or sideways channel on lower volume.
- Mark the upper and lower boundaries of the flag.
- Watch for a close above the upper boundary as the resumption signal.
What invalidates it
The pattern is invalidated if price closes below the flag's low, or if the pullback retraces most of the pole.
Common mistakes
- Calling any small pullback a flag
- Using a flag that is too long, which turns it into a different structure
- Chasing the breakout candle after a large move
- Ignoring resistance just above the flag
Questions
- How long should a flag last?
- Usually much shorter than the pole. If the consolidation drags on, the move loses momentum and the pattern is weaker.
- What is the difference between a flag and a pennant?
- A flag is a parallel channel. A pennant is a small symmetrical triangle. Both follow a sharp move.
- What is the typical target?
- Some traders measure the pole and project it from the breakout. Treat that as a rough guide, not a forecast.
Related patterns
See how patterns are applied to a specific instrument in the market guides.
Educational content, not financial advice. Chart patterns describe what price has done and do not predict what it will do next.
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