Bull Flag
LONGThe tell: Sharp pole up, shallow tight drift down, volume dries up in the flag.
- What it looks like
- A sharp vertical run on heavy volume (the pole), then a tight, orderly drift down on shrinking volume (the flag).
- Why it works
- The pole traps shorts and attracts momentum buyers; the shallow pullback shows sellers can't push price back. When the flag breaks, both groups buy at once.
- Entry
- Break above the flag's upper channel with volume expanding again.
- Stop
- Below the flag low.
- Target
- Measured move — pole height added to the breakout point.
- How it fails
- Flag retraces more than ~50% of the pole, or volume grows on the pullback — that's distribution, not rest.
Reading it in a textbook is not the same as spotting it live. Drill the bull flag on charts generated fresh every time, or try today’s five.