What are Bullish and Bearish Flags?
Bearish flags on the other hand are when the move is parallel and rising, with the trend before the flag being down.
Bullish and bearish flags are important and they clearly demonstrate that the market does not decide whether to break up or down. At the point that the flag is broken by the price, then there will be a considerable move in the direction of that break.
As a trader you can use flags so as to be in a better position to interpret significant breaks in the price. In cases when the price breaks through the flag to the downside, there could be a substantial move downwards. And, in case the price breaks through the flag to the upside then chances are that there will be a considerable move up.