This is a figure for a bullish flag pattern.

This is a figure for a bullish flag pattern. The flagpole, at both the beginning and the end of the flag, represents an impulsive momentum. The angle of this move doesn’t matter to the validity of the pattern. After this flagpole, a valid flag pattern will form a tight consolidation range. The time period of this consolidation is irrelevant. However, the longer the consolidation, the more aggressive the breakout is likely to be. This flag runs between parallel lines, moving upwards, downwards or sideways. It is usually the sideway angles or slightly downward angle flags that are usually followed by sharp moves higher.

This part is also called a rectangular channel. After the flag pattern, the price continues to trend in the original direction. This continuation could be equidistant to the flagpole, but not always. Measuring this distance could help decide on entry and exit strategies. Flags are widely used by long-term and swing traders, serving as indicators of potential breakouts. They provide ways to leverage a trending market. Bearish Flag Formation