🚨BULL FLAGS🚨 (A thread)
Bull flags are one of my favorite chart patterns. A bull flag is very similar to a flat top breakout, except with one very important difference. Unlike a flat top breakout, a bull flag will experience a slight pullback off the first strong move.
Bull flags are one of my favorite chart patterns. A bull flag is very similar to a flat top breakout, except with one very important difference. Unlike a flat top breakout, a bull flag will experience a slight pullback off the first strong move.
(1/6) Bull Flag Pictured: 
(2/5) Stocks that are surging up with high volume, can form bull flags worth trading when they begin to pullback. This puts me into the group of traders who missed the first move but will buy the first & second pullbacks.
(3/5) It's important to not enter a bull flag at the HOD. Some traders will mistake a bull flag for a flat top breakout and wait to buy until the high of day price is hit. When a stock makes a quick move up, a pullback, and then a second move up, a double top is usually formed
(4/5) An important characteristic to watch for on the bull ag is strong volume during the first initial move up, low volume during the pullback, and then high volume as the stock moves back up and through the highs.
(5/5) If you see high volume on the pullback, it may be an indicator that the stock is actually going to reverse, instead of setting up for a second move higher. The high level of volume on the pullback suggests short sellers may be coming into the trade to push it down.
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