What the patterns look like
Made-up prices. Shape example only, not a detected signal.
Read left to right. The line charts join selected turning points; they leave out the full candle history and volume.
Bull flag
- Example price
- Flag support
- Flag resistance
- The first sharp rise is the pole. The smaller pause is the flag, not a full long-term channel.
- The later move above the upper edge illustrates a breakout. A fall below the lower edge would break the bull-flag case.
- Pole start
- 100
- Pole high
- 120
- Pause low
- 112
- Later price
- 121
Made-up prices. Shape example only, not a detected signal.
Bear flag
- Example price
- Flag support
- Flag resistance
- The first sharp fall is the pole. The short rising pause is not itself evidence of a lasting recovery.
- The later move below the lower edge illustrates a breakdown. A rise above flag resistance would break the bearish case.
- Pole start
- 120
- Pole low
- 100
- Pause high
- 108
- Later price
- 99
Made-up prices. Shape example only, not a detected signal.
Find the pole before the flag
The pole is the first sharp price move. The flag is the smaller pause after it. A bull flag starts with a sharp rise. A bear flag starts with a sharp fall. Without that earlier move, a small sloping band may be a different shape.
In the bull example, price rises from 100 to 120, then pauses in a smaller band. It later reaches 121 above that band. In the bear example, price falls from 120 to 100, pauses upward, then reaches 99 below the band.
A pause is not yet a confirmed break
The site can show a compact pause or a break candidate. Strict bull flags need an actual confirmed breakout, a strong initial rise, and a limited pullback. Strict bear flags need the matching breakdown, strong initial fall, and limited rebound.
The later point in each drawing shows the direction of a possible break. It does not prove the full candle, volume, history, or confirmation rules passed. No arrow predicts another profitable move.
Know when the flag case fails
Price below flag support breaks the bull-flag case. Price above flag resistance breaks the bear-flag case. A pause that gives back too much of the first move can also fail the scanner's qualification checks.
A long established channel and a short flag are not interchangeable. Check the sharp move before the pause, its scale, and the signal date.
Current PatternLedger rules
These rule summaries are shared with the Pattern Reference. Strict means that more checks pass. It is not a promise of profit.
Bull flag
- Look for
- Sharp rise followed by a compact pause or breakout.
- Strict needs
- Confirmed breakout, strong initial rise, and limited pullback.
- What makes it invalid
- Price falls below flag support.
Bear flag
- Look for
- Sharp fall followed by a compact pause or breakdown.
- Strict needs
- Confirmed breakdown, strong initial fall, and limited rebound.
- What makes it invalid
- Price rises above flag resistance.
Check the real signal
- Use the displayed signal date and the right Daily or Weekly chart.
- Read the current direction, Strict or Loose label, and what makes the signal invalid.
- Compare matching backtest evidence. A diagram, score, or past result does not guarantee a future return.