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 sharp, violent surge. The main force pushes the price up with massive volume.
2. Flag: Consolidation zone. The price slowly retraces within a narrow downward channel. During this phase, trading volume clearly diminishes.

What’s the logic?
The market maker is essentially calming the market after a violent rally. Impatient traders see the red K-line and panic, selling off 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 the price breaks above the upper boundary of the flag. Ideally, wait for a candle to close above the breakout level on high volume.
- Stop-loss: Always place below the lowest point of the flag. Protect your capital and prevent fake breakouts.
- 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 jump in prematurely inside the flag. Be patient and wait for a breakout with a strong upward candle before entering to capture profits.

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