loading...
Ride the trend - the most reliable continuation pattern
A bull flag is a continuation pattern that occurs after a strong upward move (the "flagpole"). Price then consolidates in a tight, downward-sloping channel (the "flag") before breaking out higher to continue the original trend.
The name comes from its appearance: the sharp initial move looks like a flagpole, and the consolidation looks like a flag hanging from it. It represents a pause in an uptrend - a rest before the next leg up.
This is one of the most reliable patterns for trend traders. You're not trying to pick tops or bottoms - you're joining an existing trend at a logical entry point with a clear target.
The Bull Flag is the mirror image of momentum and patience. The flagpole forms during an explosive rally - buyers drive price up aggressively, often on surging volume. FOMO kicks in, shorts get squeezed, and greed dominates.
The flag is the breather. It's a controlled pullback where early buyers take partial profits and price drifts lower in an orderly channel. The key tell is volume: it should decrease during the flag, showing that the selling is just profit-taking, not genuine distribution.
The breakout from the flag triggers the second leg. New buyers enter, shorts from the flag get stopped out, and the momentum from the first leg reasserts. The flagpole measurement works as a target because the same energy that drove the first move reloads during the pause.
Standard entry on break above the flag's upper trendline. Aggressive traders enter on the flag's lower trendline with stop below...
Standard stop below the flag's lowest point. Tight stop below the flag's lower trendline for better R:R...
Measure the height of the flagpole. Add that distance to the breakout point. Conservative target is 75% of measured move...
The Bull Flag is one of the most reliable continuation patterns in trading. Its power comes from the clear momentum of the flagpole combined with the orderly pause of the flag.
Measure the flagpole and project it from the breakout point. That's your minimum target - tighten stops once you hit 1:1 risk-reward.
Go deeper with the Academy lesson. Learn advanced setups, volume confirmation, and real trade examples.
Join Academy →