A bullish flag is a chart pattern used in technical analysis that signals a continuation of an uptrend. It is named for its resemblance to a flag on a pole. The pattern consists of two parts: the "flagpole" and the "flag".
**How to trade a bullish flag**
Traders can use the bullish flag pattern to identify potential entry, exit, and stop-loss points.
**Entry**: Enter a long (buy) position after the price breaks above the upper trendline of the flag, indicating the continuation of the uptrend. More conservative traders may wait for the breakout candle to close for confirmation.
**Stop-loss:** Place a stop-loss order just below the lower trendline of the flag. This helps protect against a false breakout or a market reversal.
**Profit target:** A common method for setting a profit target is to measure the height of the flagpole and then project that distance upward from the point of the breakout.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.