What is the Flag Bullish?
The Flag Bullish is a multiple candlestick chart pattern that indicates the continuation of an uptrend in the market. This pattern is called Flag Bullish as it resembles the shape of a flag.
Understanding the Flag Bullish
The Flag Bullish candlestick chart pattern consists of multiple candlesticks. The first candlestick is bullish and indicates that the market is in an uptrend. The next few candlesticks are bearish and form a wedge or the inner part of a flag. Finally, the last candlestick is once again bullish and indicates the continuation of an uptrend in the market.
How to Trade Flag Chart Pattern?
As you an see at the image above after bullish trend price create channel (between two red doted lines). Bottom red doted line represent price support and upper is resistance. Once you detect pattern formation you make sure to plan your trade.
Your stop loss by the general rules of flag chart pattern your stop loss should be below support line (bottom red line.).
Open position – You should open position (buy) once after price close above resistance line (upper red line).