How Do I Analyze Bull Flag Chart Pattern?

How Do I Read Bull Flag Chart Pattern?

Bull flag pattern forms what looks like a rectangle pattern with a slight downwards tilt. The rectangle is formed by two parallel lines that act as support level & resistance level for xauusd price until the xauusd price breaks out. Generally, the bull flag pattern will not be perfectly flat but it will be sloping and having a slight tilt.

The bull flag pattern is found within an upward xauusd trend. Bull flag pattern is a continuation chart pattern where the price retraces slightly, bull flag pattern is therefore a slight xauusd price retracement with narrow xauusd price action which has a slight downward tilt. The buy signal is generated when price penetrates the upper line of the bull flag pattern. The flag portion of the bull flag pattern has xauusd price highs and xauusd price lows which can be connected together by small lines which are parallel, making it look like a small channel - flag.

The bull flag pattern occurs at halfway point of a bullish upward gold trend and after a xauusd price break-out a similar move equal to the height of the flagpole is expected.

Interpret Bull Flag Chart Pattern?

The bull flag pattern shown above was just a resting period as the gold market gathered momentum to break out & move higher. Bull flag pattern continuation gold signal was confirmed when upper line of this Bull flag pattern was broken to the upside after which the xauusd price continued to move upwards.

Interpret Bull Flag Chart Pattern?