Flag patterns in stocks are found frequently within trends. Flag patterns are continuation patterns marked by a big price move followed by a brief minor retracement and narrow price action. Flag patterns have the appearance of a flag on a pole.
There are two primary flag patterns, the bull flag and the bear flag. Bull flag patterns are upside continuation setups found within an uptrend, while bear flag patterns are downside continuation setups found within a downtrend.
Click on bull flag and bear flag pictures to learn more about each pattern.