Section 3 · Chart Reading
Bull Flags
The brief rest before the next leg up — and how to trade it.
A bull flag is a brief rest before the next leg up.
Flagpole (sharp move up on high volume) + flag (tight, slight pullback on declining volume) + breakout = continuation. This is one of the cleanest and most reliable momentum patterns.
3 things to know
Flagpole = initial sharp move. Flag = tight consolidation. Breakout = continuation.
Volume MUST decline during the flag — rising volume during consolidation is a red flag.
Measured move target: flagpole height added to the breakout point.
Dive Deeper
Bull flag criteria
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Key vocabulary — tap each card
Practice
Bull flag pattern
Flagpole → low-volume flag → high-volume breakout.
Did you know?
The measured move target for a bull flag breakout — pole height added to the breakout point — hits more than 60% of the time on high-volume breakouts.