A continuation pattern where price consolidates in a small rectangle (flag) after a sharp move (flagpole). Breakout typically continues in the original direction.
Technical analysis traders rely on Flag Pattern to read price action objectively. Knowing exactly what it signals — and what it does not — separates disciplined chart readers from gut-feel traders.
After a 100-pip bullish impulse, a tight flag formed over 4 hours before breaking out for another 80-pip move.
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