Stocks Trading Identify Flag Stock Chart Pattern

There are two different types of stock trading flag chart patterns - bullish flag stocks chart pattern and bearish flag stock trading pattern.

To trade these stocks chart patterns a trader requires to learn about the technical analysis of bullish flag stocks chart pattern and bearish flag stock trading chart pattern.

Bull Flag Stocks Trading Pattern

This bull flag stocks pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support & resistance for the stocks price until the stocks price breaksout. In general, the bull flag stock trading pattern will not be perfectly flat but it will be sloping.

The bull flag stocks chart pattern is found within a Stock Trading upwards trend. In this bull flag stocks chart pattern is a continuation stocks chart pattern where the stocks market retraces slightly, it is therefore a slight retracement with narrow stocks price action that has a slight downwards tilt. The technical buy point is when stocks price penetrates the upper line of the bull flag stocks chart pattern. The flag portion has highs & lows which can be connected by small lines which are parallel, giving it what looks like a small channel.

The bull flag stocks pattern occurs at halfway point of a bullish upwards stock trend & after a break-out a similar move equal to the height of the flagpole is expected.

Bull Flag Stocks Chart Pattern - How to Stock Trade a Bull Flag Stock Chart Pattern?

The bull flag stocks pattern above was just a resting period as the stocks market gathered strength to break-out & move higher. Bull flag stocks chart pattern stock trading continuation stocks signal was confirmed when the upper line of this flag pattern was broken to the upward side.

Bear Flag Stocks Trading Pattern

This bear flag stocks chart pattern is found in a Stock Trading downwards stocks trend. The bear flag stocks chart pattern is a stock trend continuation pattern where the stocks price retraces slightly with a narrow stocks price action that has a slight upward tilt. The technical sell point is when the stocks price penetrates the lower line of the inverted bear flag stocks chart pattern. The flag portion of this stock trading pattern has highs & lows which can be connected by small lines which are parallel, giving it what looks like a small channel.

Bear Flag Stocks Chart Pattern - How to Stock Trade a Bear Flag Stock Chart Pattern?

The bear flag stocks pattern above was just a resting period for the stocks market prior to more selling. Continuation stocks signal was completed as lower line of this pattern was broken to the down-side.