Are bull flags bearish
Bull flags typically appear in an uptrend when the price trend is expected to continue upward. Bear flags are usually observed in a downtrend when the asset's price is anticipated to face further downside pressure. Each flag pattern comprises two main components: the pole and the flag.
Is a bull flag bullish or bearish
bullish
The price action consolidates within the two parallel trend lines in the opposite direction of the uptrend, before breaking out and continuing the uptrend. As the name itself suggests, a bull flag is a bullish pattern, unlike the bear flag that takes place in the middle of a downtrend.
What is a bull flag vs bearish flag
The flag tilts sideways or downward in a bull flag pattern, while the parallel lines incline upward in a bear flag pattern. These contrasting slopes reflect the temporary balance or pause in the market before the price continues in the prevailing direction.
How accurate is the bull flag pattern
How reliable is a bull flag pattern The high-tight bull flag pattern is a reliable chart indicator, with success rates of 85 percent during a bull market.
Can a bull flag break down
A bull flag fails or is invalidated once it breaks the low of the breakout candle. We would call this "failed follow-through". As we mentioned above, you want a bull flag to put in a series of lower highs so that you can buy the breakout of the most recent candle's lower high.
What invalidates a bull flag
The protective stop loss is generally placed below the lower Flag “boarder” or below the bottom of the consolidation zone. A break below the flag will automatically invalidate the bullish flag pattern structure. This is quite obvious because the flag structure won't look any more like a flag.
Can a bear flag turn bullish
However, patterns break down all the time. As a result, when a bear flag fails, you buy the move up instead of selling into a downturn. Because it turns bullish instead.
Do bull flags always work
Although bull flags indicate a continuation of the current trend, making a move too early can be a mistake, as there is always the chance that an initial breakout could be a false signal. Waiting until the price breaks above the upper trend line may be your best bet.
