Bull Flags and Bear Flags (Now Auto-Detected for You)

Two of the most common and dependable chart patterns are the bull flag and the bear flag. This guide explains what they are in plain language, and shows you how TradeIntel now finds them for you automatically.

What Is a Flag Pattern?

Both patterns are called flags because on a chart they look a little like a flag flying on a flagpole. First comes a sharp price move, which is the pole. Then comes a short, calmer pause, which is the flag. The pole shows a burst of strong momentum, and the flag is the market slowing down for a moment before it often continues in the same direction.

The idea behind both patterns is the same. A strong move tends to start again after a short rest. The only real difference is which direction the trend is heading.

Bull Flag

A bull flag shows up in an uptrend and suggests the price may keep rising.

The pole: a sharp move upward as buyers step in.
The flag: a short pause where price drifts sideways or slightly downward in a tight range, usually on lighter volume.

Think of it as buyers taking a short break after a strong run. Traders then watch for a breakout above the flag, which is a sign the uptrend is starting again.

An easy way to remember it: the pole points up, and the breakout is expected to go up too.

A bull flag on PYPL, drawn by TradeIntel. The shaded block is the pole, a 31% run over 15 sessions. The two blue lines are the top and bottom of the flag, with the trigger at $59.40 and the flag low at $56.57. — A bull flag on **PYPL**, drawn by TradeIntel. The shaded block is the pole, a 31% run over 15 sessions. The two blue lines are the top and bottom of the flag, with the trigger at $59.40 and the flag low at $56.57.

Bear Flag

A bear flag is the mirror image. It shows up in a downtrend and suggests the price may keep falling.

The pole: a sharp move downward as sellers take control.
The flag: a short pause where price drifts sideways or slightly upward, a small bounce that tempts buyers before sellers step back in.

Traders watch for a breakdown below the flag as a sign the downtrend is starting again.

The trick to remember it: the pole points down, and the breakout is expected to go down too.

A bear flag on APP. The shaded block is the pole, a 21.9% fall over 15 sessions. The flag high sits at $437.79 and the trigger at $399.05, with the arrow marking the break below. — A bear flag on **APP**. The shaded block is the pole, a 21.9% fall over 15 sessions. The flag high sits at $437.79 and the trigger at $399.05, with the arrow marking the break below.

The Quick Way to Tell Them Apart

In both patterns, the flag leans against the main trend, and the breakout happens in the direction of the pole:

Bull flag: pole up, flag drifts down, break up.
Bear flag: pole down, flag drifts up, break down.

Bull flag and bear flag, side by side

The flag always leans against the trend, and the breakout follows the pole.

	Bull flag	Bear flag
Trend it appears in	Uptrend	Downtrend
The pole	Sharp move upward as buyers step in	Sharp move downward as sellers take control
The flag	Drifts sideways or slightly downward	Drifts sideways or slightly upward
Volume in the flag	Usually lighter	Usually lighter
What traders watch for	A breakout above the flag	A breakdown below the flag
Direction of the break	Up, the way the pole points	Down, the way the pole points

TradeIntel Now Detects Flags for You, Automatically

Flags are not hard to spot once you know the shape. The problem is time. You cannot sit and click through 100 charts looking for them, because that takes forever. That is why TradeIntel now handles the scanning for you.

You will find every bull flag and bear flag in the Premium Signals section of the dashboard. Our system automatically checks the charts and surfaces the flags there as they form, so you never have to page through them one by one. Each detected flag is listed by name.

The Premium Signals list is also fully interactive. Click the name of any flag, and TradeIntel takes you straight to that stock’s chart with the shape of the flag outlined right on it. You will see the pole and the flag drawn out for you, so you can quickly confirm why it was flagged and decide whether it fits your strategy.