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Bull flag

A sharp rise followed by a small downward-sloping pause, usually a continuation pattern.

Chart PatternsIntermediate

Definition

The rise is the flagpole and the pause is the flag. A tight flag on falling volume shows sellers are not very aggressive. A break above the flag suggests the advance may continue. A common rule of thumb projects the flagpole's height from the breakout.

Watch out for

Wide, sloppy flags fail more often. The measured-move projection is a rough guide, not a target.

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