Flag Patterns

A Bull Flag is a pattern of, an uptrend that produces an orderly price decline consisting of a narrow trend range and comprised of lower swing/pivot highs and lower swing/pivot lows.

A Bear Flag is a pattern of, a downtrend that produces an orderly price increase consisting of a narrow trend range and comprised of higher swing/pivot highs and higher swing/pivot lows.

The Flag Pattern is probably a high-profit pattern. After you enter a trade when the prices break above or below the upper or lower trend line of the flag. A stop-loss can be set just outside the flag on the opposite side of the breakout. This, in most instances, will lead to a profitable trade.