Definition
Bull Flag forms after a strong upward move (the flagpole) followed by a parallel downward-sloping consolidation (the flag). It indicates a pause in an uptrend. Breakout above the flag continues the trend with a target equal to the flagpole length.
Formula
Price Target = Breakout Point + Flagpole Length
Example
Stock rallies from $40 to $50 (flagpole=$10), then consolidates down to $47 in a flag pattern. Breakout above $50 targets $57 ($47 + $10).
FAQ
What is Bull Flag?
A bullish continuation pattern with a sharp rise followed by a downward-sloping consolidation.
How do you calculate Bull Flag?
A common formula for Bull Flag is: Price Target = Breakout Point + Flagpole Length
Why is Bull Flag important?
Bull Flag helps investors evaluate chart patterns and make more informed decisions.