# Bull and Bear Flags > Bull and bear flags are continuation patterns: a sharp move, a small sloping consolidation, then another move. Learn the rules, entries, stops and targets. Source: https://learn.tradelabsai.com/chart-patterns/bull-and-bear-flags/ Track: Chart Patterns · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Bull and Bear Flags", https://learn.tradelabsai.com/chart-patterns/bull-and-bear-flags/ A flag is a short continuation pattern that forms after a sharp, almost vertical move called the flagpole. Price then pauses in a small rectangle that slopes gently against the move, like a flag on a pole. When price breaks out of the flag in the direction of the pole, the trend usually continues. A **bull flag** follows a sharp rise; a **bear flag** follows a sharp fall. Flags are among the most popular patterns with momentum and swing traders. ## Anatomy of a bull flag *Figure: A sharp pole, a tight pullback against it, then continuation.* | Part | Description | |---|---| | Flagpole | A fast, strong move, often several momentum candles on high volume | | Flag | A small, orderly consolidation sloping against the pole, usually on lower volume | | Duration | Short relative to the pole: a few candles to a few weeks on daily charts | | Depth | Typically retraces less than half of the pole; shallow flags are stronger | | Breakout | A close beyond the flag in the pole's direction | ## Why flags work The flagpole shows strong demand (or supply). The flag is a pause where early buyers take some profit while new buyers wait, but there is no real selling pressure: the pullback is shallow and volume is light. When the pause ends, buyers return, and the trend continues. This is the impulse and correction rhythm in compact form. See [Impulse and Correction](https://learn.tradelabsai.com/price-action/impulse-and-correction/). **Example: A bull flag trade** A stock surges from $24 to $31 in four days on heavy volume after earnings. Over the next six days it drifts down in a tight channel to $29.40, with volume falling. It then closes at $30.60, above the flag's upper line, on a volume spike. A trader buys at $30.70 with a stop at $29.20, below the flag low. The measured move adds the pole's length ($7) to the breakout point, suggesting about $37.60. ## Trading flags 1. **Find a genuine flagpole:** a sharp, decisive move, not a slow drift. 2. **Confirm the flag:** small, orderly, sloping against the pole, on lower volume. 3. **Entry:** a buy stop just above the flag's upper line (bull flag), or on a close above it. 4. **Stop:** below the flag's low (bull) or above its high (bear). 5. **Target:** the measured move, the length of the pole added to the breakout point; or trail a stop. The tight stop below a shallow flag is the pattern's big advantage: risk is small compared with the potential move. ## Bear flags A bear flag follows a sharp drop: price bounces gently upward in a small channel on light volume, then breaks down and continues lower. Everything is mirrored: short on a break below the flag, stop above its high, target the pole's length below the breakdown. ## What weakens a flag - **A deep flag** that retraces more than half the pole. - **A long flag** that drags on and loses the pole's energy. - **Heavy volume against the trend** during the flag. - **A breakout without volume** or one that closes back inside the flag. ## Flags vs pennants and wedges - **Pennant:** the consolidation is a small symmetrical triangle rather than a sloping rectangle. See [Pennants](https://learn.tradelabsai.com/chart-patterns/pennants/). - **Falling wedge:** converging lines sloping down; similar meaning in an uptrend. See [Falling Wedge](https://learn.tradelabsai.com/chart-patterns/falling-wedge/). ## Common mistakes - **Calling any pullback a flag** without a real flagpole. - **Buying inside the flag** instead of on the breakout, then sitting through a deeper decline. - **Chasing a breakout** far above the flag, losing the tight stop advantage. ## Frequently asked questions ### What is a bull flag pattern? A bullish continuation pattern: a sharp rise (the pole), a small downward sloping consolidation (the flag), then a breakout to continue higher. ### How do you calculate a flag target? Add the length of the flagpole to the breakout point for a bull flag, or subtract it for a bear flag. ### How long should a flag last? Short relative to the pole. On daily charts, often one to three weeks; very long flags tend to lose their strength. Next, learn the triangle shaped version: [Pennants](https://learn.tradelabsai.com/chart-patterns/pennants/). ## Continue learning - Next lesson: [Pennants](https://learn.tradelabsai.com/chart-patterns/pennants/) - Previous lesson: [Falling Wedge](https://learn.tradelabsai.com/chart-patterns/falling-wedge/) - Related: [Falling Wedge](https://learn.tradelabsai.com/chart-patterns/falling-wedge/): A falling wedge has falling, converging trend lines with lows dropping slower than highs. Learn why it is usually bullish, how to confirm the breakout and targets. - Related: [Pennants](https://learn.tradelabsai.com/chart-patterns/pennants/): A pennant is a small symmetrical triangle after a sharp move that usually signals continuation. Learn how to identify pennants, trade the breakout and set targets. - Related: [Impulse and Correction](https://learn.tradelabsai.com/price-action/impulse-and-correction/): Trends move in strong impulse legs and weaker corrective pullbacks. Learn to tell them apart, measure pullbacks and enter trends at better prices. - Related: [Breakouts](https://learn.tradelabsai.com/price-action/breakouts/): A breakout is when price moves decisively beyond support, resistance or a pattern. Learn signs of a real breakout, entry methods, stops and how to avoid fakeouts. - Related: [Momentum Trading](https://learn.tradelabsai.com/strategies/momentum-trading/): Momentum trading buys assets that are rising fastest and sells those falling fastest. Learn the research, intraday and multi month methods and momentum crashes.