How do you calculate a bull flag target?

The measured move target is a distance equal to the size of the flag. To measure the size of the flag, you would just take the vertical distance between the upper and the lower channel within the flag. Then you would apply this distance starting from the breakout point.

What does a bull flag mean in stocks?

The bull flag pattern is a continuation chart pattern that facilitates an extension of the uptrend. The price action consolidates within the two parallel trend lines in the opposite direction of the uptrend, before breaking out and continuing the uptrend.

Do bull flags work?

Bull Flags are a subset of our momentum trading strategy and can be used on any time frame. We like trading bull flags on the 2 and 5-minute time frames as a way to scalp short-term price movements. However, they work just as good on daily charts too and are great for swing trading.

How long can a bull flag be?

The bullish flag is most significant when it appears after a sharp advance in price. A flag can form over one or more weeks. The most reliable flags typically form over 1-4 weeks. Ideally, the lowest price point of the bullish flag does not drop below the breakout point.

When should I buy a bull flag?

The best times to trade the Bull Flag Pattern is just after the market break out, during a strong trending market, or when it's near Support/Resistance. You can enter your trade with a buy stop order above the highs, or wait for a close above the highs.

Are bull flags accurate?

Benefits of Trading Bull Flag Patterns. No pattern in the stock market is 100% reliable. Any pattern could resolve with false moves. But the bull flag pattern is one of the more reliable and effective trading patterns.

How reliable is a bull flag?

Benefits of Trading Bull Flag Patterns. No pattern in the stock market is 100% reliable. Any pattern could resolve with false moves. But the bull flag pattern is one of the more reliable and effective trading patterns.