A strong vertical push (the pole) followed by a tight, slightly down-sloping pullback channel. The rally usually resumes when price breaks out of the flag.
How to identify it
- Sharp impulsive rally forms the pole
- Pullback drifts lower in a narrow channel
- Pullback retraces well under half the pole
Entry
Buy the break of the flag upper trendline or the last lower high.
Stop loss
Below the flag low.
Target
Pole length measured from the breakout.
Invalidation
Pullback drops below the midpoint of the pole.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your bull flag trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.