What are Bull and Bear Flag patterns?

Bull and bear flags are popular price patterns recognised in technical analysis, which traders often use to identify trend continuations. In this article we look at how to trade these opportunities.

How to use Bull & Bear Flag patterns on phemex?

On Phemex, you can combine the bull and bear flag patterns with other indicators to help plan out your trades. The best indicators to combine with flag patterns are popular indicators such as the Relative Strength Index ( RSI ), which can help show if the existing trend is oversold (bullish) or overbought (bearish).

How do bear flag patterns work?

Bear flag patterns work in the same way as bull flag patterns, just in reverse. Every good bear flag pattern trade should be made up of three elements: Stop Loss: Most traders use the opposite side of the flag pattern as a stop-loss to protect themselves against the price moving in the other direction.

What is a bullish flag pattern?

A bullish flag pattern is formed when the price rises during the initial trend and then slowly declines or moves sideways in the consolidation area. This pattern is considered a bullish signal since it suggests that the uptrend will continue after the pattern is complete. What Is a Bear Flag Pattern?