Bull flag
Sharp move up, tight drift down
What it is
A strong advance followed by a shallow, orderly pullback in a narrow channel, then continuation.
What it may suggest
Consolidation rather than distribution. Holders are not rushing out. Often continues in the original direction.
Where it fails
The distinction between a flag and the start of a reversal is depth. Once the pullback retraces most of the advance, it is no longer a flag whatever it looks like.
Also called bull flag pattern, flag pattern, bull pennant.
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