Learning Hub

Bull Flag

bullish

Definition

A sharp rally (pole) then a small downward-sloping consolidation (flag).

Psychology

After a strong jump, price rests a little before likely continuing up.

Real-life analogy

💡 A flag on a pole: a strong run up, then a gentle drift before the next leg up.

Expected direction

up

Entry / Stop / Target

Entry: On a breakout above the flag. · Stop: Below the flag low. · Target: Pole height projected up from the breakout.

Historical behaviour

Reliable continuation in strong uptrends.

Illustrative success rate

~60-68% on breakout · Medium reliability

Common beginner mistakes

  • Confusing a deep retrace with a flag
  • Chasing extended poles

Quick quiz — did you understand?

1. Is the Bull Flag generally considered bullish, bearish, or neutral?

2. After a confirmed Bull Flag, the expected direction is usually:

3. Which is a common beginner mistake with the Bull Flag?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.