๐ What is a Bullish Flag pattern? And how do you trade it?
The bullish pattern is one of the most famous continuation models in technical analysis ๐
It appears after a strong upward movement (we call it "the pole"), followed by a small downward correction in the form of an inclined or horizontal channel (resembling a "flag").
๐ Why is it important?
Because it indicates the likelihood of the price continuing to rise after a short pause.
๐น How do you trade it?
1๏ธโฃ Watch for the formation of the "flag" after a strong rise.
2๏ธโฃ Wait for a breakout of the upper line of the channel with a strong candle (Breakout).
3๏ธโฃ Place a buy order immediately after the breakout ๐ค
4๏ธโฃ Set your stop loss below the "flag" channel ๐
5๏ธโฃ Target = approximately the same length as the previous "pole" ๐ฏ
โ ๏ธ Do not enter before confirmation, and be cautious of false signals (Fake Breakouts)
