The Bullish Flag and Pole pattern is a common chart pattern used in technical analysis to predict the continuation of an existing uptrend. Here’s a breakdown:

1. Pole: The “pole” is the initial steep uptrend that precedes the flag formation. It’s a strong vertical rally and is often characterized by high trading volume.
2. Flag: After the pole, the price consolidates in a narrow range, forming a rectangular shape that slopes against the prevailing trend. This is the “flag.” It represents a period of pause or pullback before the trend resumes.

This pattern happens when the price breaks a key support or resistance level and then returns to test it. The “break” indicates a strong move, while the “retest” serves as confirmation.

• Upward Break: If the price breaks above resistance and retests it successfully, the old resistance becomes new support. This is often a buy signal.
• Downward Break: If the price breaks below support and retests it successfully, the old support becomes new resistance. This is usually a sell signal.

This pattern features two converging trendlines connecting lower peaks and higher troughs. It often signals a pause in a larger trend but can also indicate a reversal.

• Breakout: An upward breakout suggests a bullish move, while a downward breakout indicates a bearish move.
• Volume: Higher trading volume during the breakout adds reliability.
• Price Target: The widest part of the triangle is used to set a price target in the breakout direction.