Bull Flag Trading Pattern
A Bull Flag is a price action within the context of an uptrend that produces an orderly price decline consisting of a narrow trend range comprised of lower swing/pivot highs and lower swing/pivot lows.
The success of a Bull Flag can be greater after a significant upside move due to the possible increase of underlying support.
Bull Flags can be stronger when the swing high that begins the pattern is also an all time high due to the possible lack of future overhead resistance.
Traders interested in gaining additional confirmation by watching the sentiment read of a chart will often seek out Bull Flag patterns due to their ability to “prove” the lack of selling interest during the timeframe in question.
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