Bull and bear flags are popular patterns I look for when analyzing charts, especially when I think the current trend is going to keep going.
A bull flag usually shows up during an uptrend, suggesting the price might keep pushing higher. On the flip side, a bear flag forms during a downtrend, hinting at more downside ahead.
Both of these patterns have two parts: the pole and the flag. The pole is a strong move either up or down, depending on the trend, and it’s usually backed by a big jump in trading volume.
After that big move, there's a bit of a pause or consolidation — this part forms the actual flag. It often looks like a small channel moving slightly in the opposite direction of the main trend.
In a bull flag, the strong upward move (the pole) comes first, followed by the flag. With a bear flag, it's the opposite — the flag appears after the sharp drop.
