Bull flags are similar to bear flags except the opposite. They are temporary pull backs followed by another leg up (instead of down). To trade these you want to buy the breakout over the flag pattern.
On this particular setup you would try to get in at $9.00 and risk it breaking down through $8.45. The risk is pretty high but as you can see from the chart it was well worth it. The stock ran up to almost $12.00.
Beware of fakeout breakouts. You might get a push over the breakout level and then it pulls back and fails. You should not stick around for long if that occurs. It’s a judgement call though.
I was watching it as the bull flag formed and I didn’t pull the trigger on it.
I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.