Identifying the Bull (bear) Flag (In plain English)

Bull Flag Pattern (Bear Flag):
It is a continuation pattern which breaks in direction of the preceding move (they are both continuation patterns).

Follow these steps to identify the bull (or bear) flag pattern:

Step 1 (Price Action)
a. Pole: the prevailing uptrend,
b. Flag: a downward sloping consolidation.
c. breakout.



Step 2 (Volume)
As you know, it’s "wise" to always use volume.

Two distinct parts (reliable pattern):
1- high volume ; a near vertical flag pole.
2- low volume: a parallel consolidation comprised of 4 points.