A flag pattern is a candlestick formation that appears after a sharp move and is followed by a rectangular consolidation that resembles a flag on a pole. This pattern is fairly consistent, with clear guidance for profit and stop-loss levels.
A price action pattern is a flag pattern. It is a continuation pattern, which means you trade it in the trend's direction.
The flag is made up of two parts: the pole and the flag. The pole forms after an initial burst as the price rises or falls almost parabolically. This is frequently a news-driven event. The range-bound price action then forms the body of the flag during a period of consolidation, giving this pattern its name.

The flag pattern is a technical analysis chart pattern that typically occurs after a strong price movement in a financial market. It is considered a continuation pattern, signaling a brief consolidation before the previous trend resumes. The pattern resembles a flag on a flagpole, with two parallel trendlines forming a rectangular shape. The flagpole represents the initial sharp price movement, while the subsequent consolidation forms the flag. Traders often look for a breakout from the flag pattern, anticipating a continuation of the prior trend. Bullish flag patterns occur in uptrends, while bearish flags appear in downtrends. Analyzing volume and price targets within the pattern helps traders make informed decisions about potential entry or exit points. The flag pattern is a valuable tool for technical analysts seeking to identify and capitalize on short-term price movements in financial markets.

A flag pattern is a continuation pattern used in technical analysis to identify short pauses within a strong trend. It forms after a sharp price movement called the flagpole. Following this move, price enters a brief consolidation phase, moving in a narrow channel that slopes slightly against the main trend. This pause represents temporary profit-taking rather than a change in market direction.

Once consolidation ends, price often breaks out in the same direction as the original move, continuing the trend. There are two main types: bull flags, which appear after strong upward moves, and bear flags, which form after sharp declines. Traders favour flag patterns because they are easy to spot, provide clear entry and stop levels, and align well with momentum trading. In fast markets like forex, flag patterns often signal opportunities to join an existing trend with controlled risk.