Bull flag is one the most common patterns in Trading. If you are a Day/ Swing trader, you need to know this setup very well as you'll use this pattern often in your trading journey.
We've seen so many bull flag breakout's working off late. Here's a detailed post on how we spotted these bull flags & traded them for good profits.
We've seen so many bull flag breakout's working off late. Here's a detailed post on how we spotted these bull flags & traded them for good profits.
What are bull flag patterns & how does it look like?
Bull flags are typically spotted when the stock is in an uptrend . It is a price continuation pattern.
It will be formed when the uptrend for that stock pauses & consolidates for few days. As the price consolidates, it forms a flag pattern as seen in the below image.
A flag breakout happens when the descending upper trend line is broken & price moves upward. When a flag breakout happens with above average volume, it increases the chances of that breakout to succeed.
It will be formed when the uptrend for that stock pauses & consolidates for few days. As the price consolidates, it forms a flag pattern as seen in the below image.
A flag breakout happens when the descending upper trend line is broken & price moves upward. When a flag breakout happens with above average volume, it increases the chances of that breakout to succeed.
How to calculate price target when you trade a Bull flag pattern?
Measure the height of the flag pole.
Add that flag pole height from descending lower trend-line of your bull flag
Calculate the potential price target as shown in the below image
Measure the height of the flag pole.
Add that flag pole height from descending lower trend-line of your bull flag
Calculate the potential price target as shown in the below image
Here are few bull flag breakouts we took past few weeks & swing traded them for good profits:-
MSFT 3.3% Winner
MSFT 3.3% Winner
SHOP 3.2% winner
DIS 7.5% winner
SSO 3.5% Winner
Here's a closer look of how we keyed on these stocks & entered these flag breakouts using 15 min chart
MSFT
MSFT
- I used this 15 min chart shared below after noting the flag pattern on Daily chart.
- Price consolidated in a tight range before breaking out.
- Breakout level of 145.10 is clearly seen & marked on this chart
- Once the price broke over that 145.10 pivot, volume started pouring in.
- Remember that when a flag breakout happens with above average volume, it increases the chances of that breakout to succeed.
- MSFT then resumed its uptrend after breaking out of this bull flag
- Took profits once this uptrend was broken & exited @ 150 for 3.3% gain
SHOP
- 15 min chart of SHOP shared below shows tight consolidation after prior breakout of uptrend
- Active traders could have entered on a break of that descending trendline @ 374
- Safer entry would be a break of this range @ 382.50
- Notice the volume that kept pouring in on that breakout.
- SHOP wasted no time & trended higher for next 2 days.
- Profit was taken @ 395 as it failed to break above 397 twice
DIS
- 15 min chart of DIS shared below shows tight consolidation after prior breakout of uptrend
- Breakout out of this tight 3 day range happened @ 139 - 139.50 pivot
- Notice the volume that came in as DIS broke out from that mini bull flag on Daily chart
- Profit was taken at 150 for 7.5% gains.
As you saw , these bull flag setups can give you nice profits within a very short period of time. Hope you gained little more insight on how I trade these setups.
See you in the streams
Amogh
See you in the streams
Amogh
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Your use of this website or information provided in this website, newsletters, or trade setups constitutes your informed consent and agreement with the terms of this Disclosure and any Terms of Service, Terms and Conditions, and Privacy Policies. If you do not agree to be bound by these terms, you must immediately cease using this website or any information provided in the website, Twitter, Discord, newsletter, or trade setups.
Any information contained in this website, newsletter(s), or trade setups is the personal and subjective view of Positive Trends Research LLC and given solely for informational and educational purposes and we do not intend, nor should you rely on it, as specific advice, or recommendations for any investment decisions. The only purpose of information provided in this website, newsletter, or trade setups is for general education about the financial industry.
We are NOT registered with the US Securities and Exchange Commission (“SEC”) or any state securities regulatory authority as a securities broker-dealer or investment adviser. We are not licensed to give investment advice. We do not give investment advice in any manner.
Read the full disclaimer here...