A1 Trading Company

Bullish Flag Patterns

How to Trade Bull Flag Patterns like a pro!
Big Idea: A bullish flag pattern forms when price is in an uptrend and retraces. This retracement helps form what is considered the flag while the initial uptrend is the flag pole. The two price action events help form what looks like a flag, and when traders see this, they can see that the uptrend could be ready to continue.
This is roughly what a bullish flag pattern looks like in price action. You can see a period of a strong uptrend followed by another period of consolidation. Eventually, price breaks above once again to form new highs. This is a common behavioral pattern in most markets that traders like to look for.

Key Takeaways From Bull Flag Patterns

-A bullish flag pattern forms after a steep uptrend

-The pattern forms what looks like a flagpole holding a flag

-The period of consolidation is a sign that price is ready to continue its uptrend

Additional Resources

Looking for more help with bull flag patterns?
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram