In Learn to Trade #Chart Patterns

Common Chart Setups

Bull Flag: Bull flags, also known as bullish pennants, are my favorite chart pattern and are considered a continuing trend pattern. They typically form as a stock consolidates after a sharp move higher. During the consolidation, the stock makes lower highs and higher lows bringing the price action to what is known as an inflection point. The result is price action that resembles a flag on a flagpole. When the trading range tightens, a stock breaking out of a bull flag will trade higher than...