Knowledgebase
What is a Flag Pattern?
Posted by Charlie Trader on 02 April 2018 03:36 PM

A flag is a consolidation pattern during a dominant trend and entails the price rebounding off 2 short term parallel trendlines.

There is very rarely a 'perfect' flag shape, but what we are looking for is price consolidation.

The flags can be in the shape of pennants, triangle or rectangular, but normally we do not like bull flags that are upward sloping or bear flags that are downward sloping as there is no clear entry point.

The Flag Trader TradeFinder will display results where the stock price has been moving up/down for a few days, followed by at least 3 days of price consolidation.

Results tables will also highlight Flags by showing a flag icon and highlighting the ticker (Blue for Bull, Red for Bear).


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