flag

Flag

A Flag is a chart pattern that signals trend continuation. It looks like a rectangle with one missing side, and it forms against the trend after a strong price move (the Flagpole).
Learn how you can use the Flag pattern in your trading strategies.
How Flag works

This pattern usually appears during a strong market trend, showing that the trend will likely resume after a brief pause.
While some traders might think this pause signals a trend reversal, the key to spotting a continuation is the line opposite the Flagpole. If the price crosses this line, it often triggers many trading orders, pushing the trend forward.
Traders use the Flag pattern to stay with the trend. They enter trades once the price breaks through the Flag in the direction of the original trend.
Identifying the Flag pattern

Bullish Flag
Find a sharp, vertical rise in price—this serves as the Flagpole.Look for a slight downward consolidation after the Flagpole, resembling a small parallelogram that slopes downwards. The Flag's body must always be smaller than the Flagpole.Identify a decisive breakout above the Flag.
Bearish Flag
Find a sharp price decline—it creates a Flagpole that points downwards.Look for a slight upward consolidation after the Flagpole, forming a small parallelogram that slopes upwards. The Flag's body must always be smaller than the Flagpole.Identify a decisive breakout below the Flag.
Trading examples
Bullish Flag

After the pattern forms, watch for a breakout indicating a bullish trend.
Once the breakout occurs, you can enter the trade immediately or wait for confirmation, such as a retest from above.
Place a Buy order and set your stop loss below the local minimum.
Ensure your stop loss is no more than 5% of your total deposit.
Set your first take profit at the local maximum. To potentially achieve higher profit, your second target should match the length of the Flagpole.
Bearish Flag

After the pattern forms, watch for a breakout indicating a bearish trend.
Once the breakout occurs, you can enter the trade immediately or wait for confirmation, such as a lower-side retest.
Place a Sell order and set your stop loss above the local maximum.
Ensure your stop loss is no more than 5% of your total deposit.
Set your first take profit at the local minimum. To potentially achieve higher profit, your second target should match the length of the Flagpole.
Leveraged trading involves risk. This content is not investment advice. Trade responsibly.
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$Flag

entry 1700-1800
flag pattern
sell side
stop-loss 1500