Advanced Lesson 09 Flags And Pennants

Flags And Pennants In Trading

In stock market technical analysis, flags and pennants are some of the most effective and the most reliable continuation patterns, which usually appear right after a strong price move and represent brief periods of consolidation before the trend resumes in the same direction. When you can identify them correctly, flags and pennants can offer traders clear entry points, logical stop-loss levels, and well-defined price targets, making them a practical part of any trading strategy.

Flags and pennants are made up of bull flags and bear flags. The bull flag is formed right after a sharp upward price movement, creating a small, downward-sloping or sideways consolidation. The bear flag appears right after a steep decline and is followed by a slight upward or sideways correction. Both of these patterns indicate a temporary pause before the previous trend continues. The trick when using flags and pennants is in recognizing the setup in its early stages and then managing the risk carefully thereafter.

In this course, you will learn all about the bull and bear flags and pennants, how they form, why they happen, and how you can use them to a great advantage in your trading.

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