Teaching: Bull Flag Pattern

In a bull market, one of the most profitable structures. The bull flag pattern is a classic and highly reliable continuation pattern.

What it looks like on the chart:
1. Flagpole: A violent straight surge. The main force pushes the price up with huge volume.
2. Flag: Consolidation zone. The price slowly retraces within a narrow downward channel. Trading volume clearly diminishes during this phase.

What is the logic?
The market maker is just calming the market after a violent rally. Impatient traders see the red candlestick and panic, then sell in fear. Smart money quietly adds positions, reloading before the next surge. The spring is being compressed. Weak hands are thoroughly shaken out.

How to operate correctly?
- Entry: Enter strictly when breaking above the upper boundary of the flag. It’s best to wait for a candlestick to stabilize above the breakout level on high volume.
- Stop loss: Always place below the lowest point of the flag. Protect your capital and prevent a false breakout trap.
- Take profit: Measure the height of the initial flagpole, then project upward from the breakout point. This is our main target level.

Core rule:
Never rush in inside the flag. Be patient and wait for a breakout candlestick with explosive upward momentum before entering to capture profits.

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