"Bull Flag" are continuation patterns representing a small pause in the market trend. They can be easily spotted as they appear right after a sudden and quick burst from a trading range. In dynamic and quick markets, Flags form as prices pause and move in the same direction as the prior trend after a clear breakout. Flags are known to be very reliable patterns.
"Bull Flag" patterns can be spotted when the market breaks out from a range and makes "lower highs" and "lower lows" in a tight formation. The trend lines connecting these highs and lows are near parallel. Also, tight and well defined "flags" perform better than short and zigzag "flags".
Target: Measure the prior distance from the "swing low" at "point [A]" to the "flag" formation at "point [B]". Target 70% to 100% of this range from C. Secondary targets in bull markets are 138% to 162% of AB from C.
A one formation can always be broken. A breakthrough of 61.8% Fibo will be lead to a deeper correction !!!