How to Commodities Trade a Flag Pattern

There are two different types of commodity flag commodity chart patterns - bullish flag commodity chart pattern and bearish flag commodity chart pattern.

To trade these commodity chart patterns a commodity trader requires to learn about the technical analysis of bullish flag commodity chart pattern and bearish flag commodity chart pattern.

Bull Flag Commodities Trading Chart Pattern

This bull flag commodity chart pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the commodities price until the commodities price breaks out. In general, the bull flag commodity chart pattern will not be perfectly flat but it will be sloping.

The bull flag commodity chart pattern is found within a Commodities upward trend. In this bull flag commodity chart pattern is a continuation commodity chart pattern where the commodity market retraces slightly, it is therefore a slight retracement with narrow commodities price action that has a slight downward tilt. The technical buy point is when commodities price penetrates the upper line of the bull flag commodity chart pattern. The flag portion has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.

The bull flag commodity chart pattern occurs at halfway point of a bullish upward commodity trend and after a breakout a similar move equal to the height of the flagpole is expected.

Bull Flag Commodities Trading Chart Pattern - How to Commodities Trade a Bull Flag Commodities Trading Chart Pattern in Commodities?

The bull flag commodity chart pattern above was just a resting period as the commodity market gathered strength to break out and move higher. The bull flag commodity chart pattern commodity continuation commodity signal was confirmed as the upper line of this flag pattern was broken to the upside.

Bear Flag Commodities Trading Chart Pattern

This bear flag commodity chart pattern is found in a Commodities downward commodities trend. The bear flag commodity chart pattern is a commodity trend continuation pattern where the commodities price retraces slightly with a narrow commodities price action that has a slight upward tilt. The technical sell point is when the commodities price penetrates the lower line of the inverted bear flag commodity chart pattern. The flag portion of this commodity chart pattern has highs and lows which can be connected by small lines which are parallel, giving it the look of a small channel.

Bear Flag Commodities Trading Chart Pattern - How to Commodities Trade a Bear Flag Commodities Trading Chart Pattern in Commodities?

The bear flag commodity chart pattern above was just a resting period for the commodity market prior to more selling. The continuation commodity signal was confirmed as the lower line of this pattern was broken to the downside.