Bull Flag Price Action Trading Strategy Guide (2021)

Gordon James


Buy and Sell Crypto

This is a short introduction to the Bull Flag price action trading strategy. It provides an overview of how it works, what are its pros and cons, and how you can use it in your own trading.

The bull flag scanner is a tool that scans the market for bull flags. It will provide you with a list of all the potential areas where these can occur and also how to trade them.

A bull flag pattern may be seen on the chart when a stock is in a strong uptrend. It’s termed a flag pattern because it resembles a flag on a pole on a chart, and while we’re in an uptrend, it’s considered a bullish flag. On the basis of high levels of gross national product, market value has given a significant increase.

attempting to construct the ladder On lighter volume, stock unites at the top of the pole to produce the flag. The stock breaks out of a consolidation pattern on high relative volume and continues to rise.

MT4 Bull Flag Indicator

Bull Flags are a momentum trading strategy that may be used to any time frame. We like trading bull flags on the 2 and 5 minute marks.

This is a price action pattern that is developing for trading pullbacks. This may be seen in all of the major chart patterns. Above all, the Bull flag trading action may be used in a static pattern as part of a trading concept or notion.

Indicator of Starlight

Indicator of a Breakout

V3 (non-repainting)

There are many instances of Bull flag trading activity on the internet. Traders may learn more about this Bull flag trading strategy by searching the internet. This is very beneficial. With the different legs, there are distinct pullbacks. On the other side, there are just a few pricing bars to choose from.

Bull flag trading is a simple procedure. The most challenging part of trading this pattern in real time is finding it, but our scanners that stream every day for Warrior Starter and Warrior Pro students make it simpler. You may be perplexed if you’re searching for trading examples to learn more about bull flags.

Bull Flag vs. Bull Pennant

Fortunately, labels aren’t required. As you gain experience, you’ll discover that the form and name of a chart design aren’t as important as they once were. Bull flags, on the other hand, are usually associated with three concepts:

There has to be a bullish trend going on. It is possible to create a credible diagram. The bull flag does not reverse far enough to call into doubt the bullish market structure. Based on these ideas, I’ve developed a set of rules for detecting bull flags in a consistent manner.

Bull Flag Price Action Trading Strategy Guide (2021)

Identifying Bull Flag guidelines

  • The guidelines for bull flags in this guide are more specific than those in this more broad chart patterns guide.
  • To qualify as an ideal bull flag, the market must be above the 20-period exponential moving average (EMA).
  • The pullback must produce at least one high swing on its way down.
  • It’s best to avoid a bar high that’s below the 20-period EMA.
  • The following elements are more important to us than the flag’s physical shape: The trend’s strength Possibility of identifying a turning point Whether the retreat is shallow or deep depends on the degree of the retreat.

Guidelines for trading

Follow these guidelines to get started: When a candlestick closes over the counter-trendline, it’s time to buy. This is how we can tell whether there has been a bull flag breakout. If a bar breaks above the counter-trendline but closes below it as the fall continues, adjust the line to enable the break. Place a defensive stop order below the swing low closest to you. The line will get thinner.

Day Trading with the Flag Chart Pattern

Use the push to project a target before the bull flag. The projection may start at the flag’s base or at the breakout point. While they are an excellent place to begin, there may be occasions when you wish to break the rules. Any deviations, however, must be justified. For a genuine study, we won’t only look at bull flags that meet our criteria.

Bull Flag Price Action Trading Strategy Guide (2021)


  • Because the market was above the 20-period EMA, our technical bullish bias requirements were satisfied.
  • Swing highs formed when the market retreated. With this swing high, we established a counter-trendline to identify the bull flag’s apex.
  • The bullish day ending gave us the signal to go long.
  • We placed a defensive sell stop order just below the most recent swing bottom.
  • I will not dispute that the flag breakout was followed by a bull run.

Indicator of Slow Stochastic

Formula MT4 Xmaster

The EMA rule protects pullbacks that cast doubt on the primary indicator’s trend. The pullback did, in fact, retrace a significant portion of the positive rally that preceded it. The market bias got hazy at that point.

  1. The stock is flying upward on high relative volume, owing to a news element, most likely.
  2. Prices settle at or around highs when there is a definite retreat trend.
  3. It’s an excellent opportunity to purchase when prices break out above the consolidation pattern on strong volume.
  4. It’s a good idea to use a stop order below the bottom of the integration pattern.
  5. The risk-to-reward ratio for profit goals should be at least 2:1. As a result, if you wager 25 cents, your first PT will be 50 cents.

Bull Flag Price Action Trading Strategy Guide (2021)

What is the best way to trade the bull flag Price Action Forex Pattern?

In this design, the volume is the most essential factor to consider. Big shifts and the probability of a successful breakout are signaled by volume. A clearly defined falling trend line that may be utilized as a breakout point is the second item to look for. The top part of the flag will be this.


In this lesson, we’ve defined the bull flag design extensively. This technique may be used to solve any non-linear or non-pullback problem. As a consequence, we didn’t make a difference between conventional and non-traditional chart layouts. These structures include triangles, pennants, rectangles, and other forms.

Other websites, on the other hand, may go into more into on these different continuation patterns. Here are several terminology and nuanced points to consider.

Mechanical traders like chart patterns that meet precise criteria, since this allows them to automate their strategy. Market trends are identified by freelance traders using their previous experience. My preference is for a hybrid approach. First, I develop a technique for systematically detecting price patterns of interest. Then, by breaking in on the occurrences, I conduct optional price analysis. This is how we went about trading bull flags in this tutorial.

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