$W Identifying a W Bullish Flag

A bullish flag pattern on the chart of an asset represented by W signals a potential continuation of an established uptrend, indicating a brief consolidation before the next move upward.

This pattern forms after a strong price rally, creating the flagpole. The consolidation that follows is a slight downward or sideways drift within parallel trendlines. A key feature is declining volume during this phase, showing a lack of selling pressure.

The pattern is confirmed when W's price breaks out above the flag's upper trendline. This breakout should occur on rising volume and projects a further advance roughly equal to the flagpole's height.

Ultimately, this suggests the prior uptrend is healthy and likely to resume.