Example of a bullish flag on 1 hour GbpAud chart: Any time frame and can be bearish too.
These are almost similar to wedges in characteristics. The only significant difference between the two of them is the trend line. Trend lines in flags are said to be parallel and not converging like the wedges.
Flags can be both bullish or bearish, depending on the circumstances. Bullish flags can be found during an upward market trend with the trend lines running paralleled above and below the price action. To get the confirmation for the continuation of the trend, look for a breakout just above the flag.
Similarly, you look for bearish flags during downtrends. They will be easy to spot since they form an upward slope.
These are almost similar to wedges in characteristics. The only significant difference between the two of them is the trend line. Trend lines in flags are said to be parallel and not converging like the wedges.
Flags can be both bullish or bearish, depending on the circumstances. Bullish flags can be found during an upward market trend with the trend lines running paralleled above and below the price action. To get the confirmation for the continuation of the trend, look for a breakout just above the flag.
Similarly, you look for bearish flags during downtrends. They will be easy to spot since they form an upward slope.