5. Bull Flag Chart Pattern and Trading Strategies

Bull Flag vs Bear Flag

A bear flag is identical to a bull flag except the trend will be to the downside. You’ll have a sharp down move on high relative volume followed by a slight pullback before continuing on the trend.

The key to trading flag patterns is following the volume. When volume comes in on the breakout, you want to be jumping on board because this is confirmation that other traders were waiting for the same thing and will increase the likelihood of success dramatically.

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