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1. Technical Characteristics of Bullish Flags

1. Appears during an upward trend.

2. The price of the coin rises sharply at a steep angle, forming a flagpole.

3. Then the price starts to consolidate, forming a price range with minor fluctuations, slightly sloping downwards. By connecting the high points and high points, low points and low points of this area, two parallel lines can be drawn, forming the flag surface.

4. During the formation of the flag, the overall trading volume significantly decreases.

2. Technical Significance of Flags

Bullish flags are likely to appear during a rapid price increase,

Once the flag breaks above the upper line, the market outlook is bullish, signaling a buying opportunity!

The excessive upward momentum has exhausted the buying power,

A large amount of profit-taking accumulated in a short period has increased the losses for buyers,

Subsequently, the price starts to stagnate and decline.

Because the surge itself indicates that the major players and many traders are optimistic about the future,

After the price spike, it attracts a lot of traders' attention and funds,

So there will be continuous buying pressure, and the speed of decline is not fast,

The magnitude is also not very large, and the trading volume clearly decreases,

Reflecting that the selling pressure in the market continues to diminish during the pullback,

When the bulls counterattack and break above the upper line of the flag, that is the right-side buying point.

3. Practical Logic

1. The upper line of the flag acts as a support; if it breaks out with increased volume and retraces without breaking it, you can enter for buying.

2. If a bottom formation occurs at the tail of the flag structure, you can also buy in advance.

3. Judging the flag is suitable to observe with naked candles, and use moving averages and other indicators to assist in finding buying points.

4. Once the price surpasses the theoretical increase of the flag, if the amplitude increases, and large bearish candles or shooting stars appear, traders should promptly reduce their positions when reaching the theoretical increase.

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