# Flags

## Bullish Flag

This pattern forms during an uptrend. It begins with a strong upward movement (the "flagpole"), followed by a period of consolidation that slants slightly downwards forming a "flag". The consolidation is against the trend, but it's usually a pause before the uptrend resumes. A breakout above the top of the flag is typically seen as a continuation signal.

<figure><img src="/files/vFG1dkyCzMP0XxBzD2SX" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/Z6VirqG6sRwWWleWX6AM" alt=""><figcaption></figcaption></figure>

## Bearish Flag

This is the inverse of a bullish flag and forms during a downtrend. It starts with a sharp downward move (the "flagpole"), followed by a slight upward consolidation period forming the "flag". This consolidation is against the trend and usually represents a brief pause before the downtrend resumes. A breakout below the bottom of the flag is generally seen as a continuation signal.

<figure><img src="/files/Mfw9ifgHibLZLmOK5PaQ" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/t5ZmaPbHQIpUjjkzdXLo" alt=""><figcaption></figcaption></figure>

In both patterns, the flagpole represents a strong, impulsive move, while the flag represents a pause or pullback in the price. The breakout, accompanied by an increase in volume, is a signal for traders that the original trend (bullish or bearish) is likely to resume.


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