Bull Flag Chart Pattern
Flag & Pennant chart patterns typically develop as a continuation pattern, meaning that the trend that was in place before the pattern started to form will continue for the short-term upon a breakout from the pattern. For a Bull Flag chart pattern, that means its uptrend is going to resume upon completion of the “flag”.
Requirements
Characteristics & Observations
Breakout Area
Trading Strategies
Real Chart Examples
Corning Inc. (GLW)
Corning Inc. (GLW) started to form a Bullish Flag Chart Pattern on it’s daily chart. The components of a Bullish Flag Chart Pattern include a “pole” and a “flag”. The pole on the below pattern includes a Rising Window Candlestick Pattern (gap-up); this , which is typically a support area. The flag formed and came down to touch the top of the gap-up support area and appears to be making its move back towards the upper trendline. A close above the upper trendline on heavier than normal volume would confirm an upside breakout for a bull flag continuation pattern.
Here is an updated chart on GLW almost 6 months after the breakout from the bullish flag continuation pattern. Notice how this particular bull flag lead to significantly higher shares prices for GLW following the breakout from the bullish flag continuation pattern?
