A bull flag has two parts: a flagpole (sharp rapid rally) and a flag (small, parallel downward consolidation). Volume contracts during the flag; a breakout above the flag's upper boundary on expanding volume confirms the uptrend's continuation.
A technical pullback mid-uptrend. After a sharp rise, profit-taking forms the flag while low volume shows selling pressure is light and the trend holders are holding. Breaking the flag signals new buying and an accelerated advance.
Enter long when price breaks above the flag's upper boundary with volume expansion (win rate 67%). Stop-loss below the flag's low. Target = flagpole length measured up from breakout point.
The flag's retracement should not exceed 50% of the flagpole. Consolidation should last no more than 20 candles. Low volume during the flag is essential.