📍 Entry / Buy Zone
Above the Flag
Enter on a candle close above the flag's upper trendline as the prior uptrend resumes.
🛑 Stop Loss
Below the Flag Low
Place the stop just under the lowest point of the flag consolidation.
🎯 Price Target
Breakout + Pole Height
Measure the flagpole (the sharp rally) and project that distance up from the breakout level.
⚖️ Risk / Reward
Aim for ≥ 2:1
Flags can run fast — but only take the trade if the projected target is at least 2× your risk.
Trading Rules — Bull Flag
01Pole then channel. A bull flag is a steep rally (the pole) followed by a slight downward-sloping consolidation on lighter volume.
02Tight and brief. The best flags are shallow and short-lived. A deep, drawn-out pullback weakens the pattern.
03Wait for the breakout close. Enter when a candle closes above the upper flag line, not on an intrabar poke.
04Volume confirms. Volume should dry up during the flag and surge on the breakout candle.
05Invalidation. A close back below the flag low means the pattern failed — stand aside.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.