Continuation patterns
Bull flag
Usually bullish
A sharp rally (the pole) followed by a tight, slightly downward-sloping consolidation (the flag).
What a bull flag tells you
The consolidation is orderly profit-taking, not distribution. What matters is that the pullback is shallow and the range contracts — that is what separates a flag from the start of a reversal.
Why it forms
Buyers who missed the pole wait for a discount; sellers are only taking profit, not attacking. Supply is thin.
How traders enter it
Entry on the break of the flag's upper boundary, stop below the flag low, objective the pole height projected from the breakout.
How it fails
Flags that retrace more than about two-thirds of the pole, or that widen instead of tightening, usually are not flags. Late-stage flags in an extended trend fail more often.
That last section is the one worth rereading. A pattern is only useful because it comes with a level that proves you wrong — without one you have a shape and a hope.
People also ask
Is a bull flag bullish or bearish?
A bull flag is usually read as bullish, but only once it confirms. Before the confirming break it is a shape, and shapes fail. Context decides more than the label does.
How do you trade a bull flag?
Entry on the break of the flag's upper boundary, stop below the flag low, objective the pole height projected from the breakout.
When does a bull flag fail?
Flags that retrace more than about two-thirds of the pole, or that widen instead of tightening, usually are not flags. Late-stage flags in an extended trend fail more often.
Can ChartLens spot a bull flag for me?
Yes. Photograph or screenshot any chart and ChartLens names the pattern if it is clearly formed, with a confidence level and whether it is forming, confirmed or failed — and says nothing if it is not there.
Last updated .