After a strong upward thrust (flagpole), price consolidates in a tight downward-sloping channel (flag). The break above the flag signals continuation of the primary trend with measured-move targets equal to the flagpole length.
Indicators Used
Swing High/LowVolume
Rules
📈 Flag Break Long
- Strong uptrend move (flagpole). 5-10% advance in 3-10 candles
- Consolidation in a tight downward channel (flag). 3-8 candles
- Flag must slope opposite to flagpole (down for bull flag)
- Volume contracts during flag formation (less than during flagpole)
- Enter long on close above the flag's upper trendline
- Stop: below the flag's lower trendline
- Target: flagpole length projected from breakout point
🚫 Invalidation
- Flag slopes UPWARD. That's a rising wedge (bearish), not a flag
- Consolidation exceeds 50% retracement of flagpole. Likely full reversal forming
- Volume expanding during flag (instead of contracting). Distribution risk
⚙️ Configuration
- // Bull Flag Config
- Flagpole: 5-10% move in 3-10 candles
- Flag duration: 3-8 candles
- Flag slope: opposite to flagpole
- Volume signature: expand → contract → expand
Flagpole Length
Target
Tight Range
Required
💡 Pro Tip
The tightness of the flag matters more than its duration. A 3-candle tight flag is more explosive than an 8-candle loose one. If the flag gets too wide (wider than ½ the flagpole), the pattern is degraded and often leads to failure.