Continuation · Bullish · High reliability
Flag Pattern Explained
Break in the direction of the pole after the flag drifts.
What it looks like
A short-term continuation pattern that looks like a flag on a pole.
Best after a sharp impulse on intraday to daily timeframes.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Strong impulse move (the pole), then a tight counter-trend channel.
- Flag should slope against the prior trend.
- Break in trend direction often matches pole length (textbook rule).
When the read is wrong
Invalid if price breaks opposite to the prior trend (against the pole).
Common mistakes
- Calling it a flag without a sharp pole before it.
- Accepting a pullback that gives back too much of the pole. A deep retrace weakens the read.
Questions and answers
What is a flag pattern?
A sharp move, the pole, followed by a small channel that drifts against that move. The usual read is continuation in the pole's direction.
What is the difference between a flag and a pennant?
A flag has parallel lines. A pennant has lines that converge into a small triangle.
Ask ChartNox AI about Flag Pattern
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a Flag Pattern on a chart, step by step?
- What usually invalidates a Flag Pattern pattern?
- What mistakes do beginners make with Flag Pattern?