Bull flag

Parts of a bull flag

• The pole: a sharp rally, usually several strong candles in a row.
• The flag: a small pause drifting against the move, contained by parallel lines.
• Trading activity fades while the flag forms.
• The trigger: a close above the flag's upper boundary with activity picking up.

Where it points

Add the pole's height to the breakout: a pole from $20 to $30 and a breakout at $28 projects about $38. The stop usually goes below the flag's lowest point, so the trade risks the flag's depth to target the pole's length.

Flag, pennant or correction?

A flag is a parallel channel; a pennant is a small symmetrical triangle. Both are read the same way. If the pullback deepens past half the pole, it is no longer a flag but a correction.

On BRVX

BRVX's chart runs from 1-minute to 1-month candles, and bull flags appear on every timeframe — a flag on a 5-minute chart projects minutes of movement, one on a daily chart projects weeks. BRVX lets you attach the take-profit at the projected level when you open the position.