A bull flag is forming here in 1 Day TF. It is a very basic technical analysis pattern that traders use to identify potential continuations of an existing bullish trend. It is characterized by a sharp upward price movement (the flagpole), followed by a period of consolidation with downward-sloping or horizontal price action (the flag). The consolidation typically occurs on lower volume, and the pattern is complete when the price breaks out above the upper trendline of the flag with higher volume, signaling a potential resumption of the uptrend.
Here are the key components of a bull flag:
Flagpole: A significant upward price movement that forms the initial part of the pattern.
Flag: A rectangular consolidation phase where the price moves sideways or slightly downward, usually on lighter volume.
Breakout: The price movement above the upper trendline of the flag, ideally on increased volume, indicating the continuation of the bullish trend
Here, the Bull scenario will be invalidated if it breaks out in the downward direction.
Here are the key components of a bull flag:
Flagpole: A significant upward price movement that forms the initial part of the pattern.
Flag: A rectangular consolidation phase where the price moves sideways or slightly downward, usually on lighter volume.
Breakout: The price movement above the upper trendline of the flag, ideally on increased volume, indicating the continuation of the bullish trend
Here, the Bull scenario will be invalidated if it breaks out in the downward direction.
Comment:
So far so good!