Quick Look: What is a Bull Flag Pattern?
Hey everyone, been seeing a few setups lately that got me thinking about basic patterns. One that keeps popping up in my mind is the bull flag. Essentially, after a strong, almost vertical move higher (the flagpole), price consolidates in a downward-sloping channel or rectangle. Think of it as a brief pause where buyers might be taking a breath or sellers are testing the water, but the overall conviction remains bullish. The key is usually lower volume during this consolidation phase, signaling it's not strong selling pressure, just a rebalancing. We look for a breakout above the upper trendline of that flag, ideally with increasing volume, to signal a continuation of the prior upward move. It's a classic continuation pattern, and while nothing's guaranteed, understanding the context it forms in can be really useful for identifying potential follow-through after a sharp price rise. Not seeing one play out perfectly on $CRM or $AMD right now, but it's a good one to keep on the radar.