A bullish flag is a technical analysis pattern that indicates the continuation of an existing uptrend in a financial asset. It is named for its resemblance to a flag on a pole, where the "pole" is a sharp price increase and the "flag" is a period of consolidation or slight retracement that follows.
Characteristics of a Bullish Flag:
Flagpole:
A significant and rapid price increase leading up to the flag.
Indicates strong bullish momentum.
Flag:
A period of consolidation or slight downward retracement.
Typically takes the shape of a rectangle or parallelogram that slopes against the prevailing trend (downwards in this case).
Volume tends to decrease during the formation of the flag.
Breakout:
Occurs when the price breaks out above the upper boundary of the flag.
Confirmation of the pattern and often accompanied by a spike in volume.
Interpretation:
Continuation Pattern: The bullish flag suggests that after a brief consolidation, the price is likely to continue moving in the direction of the previous trend (upward).
Price Target: The potential price target after the breakout can be estimated by adding the length of the flagpole to the breakout point.
Characteristics of a Bullish Flag:
Flagpole:
A significant and rapid price increase leading up to the flag.
Indicates strong bullish momentum.
Flag:
A period of consolidation or slight downward retracement.
Typically takes the shape of a rectangle or parallelogram that slopes against the prevailing trend (downwards in this case).
Volume tends to decrease during the formation of the flag.
Breakout:
Occurs when the price breaks out above the upper boundary of the flag.
Confirmation of the pattern and often accompanied by a spike in volume.
Interpretation:
Continuation Pattern: The bullish flag suggests that after a brief consolidation, the price is likely to continue moving in the direction of the previous trend (upward).
Price Target: The potential price target after the breakout can be estimated by adding the length of the flagpole to the breakout point.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.