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A bull flag is a common price pattern that forms when a security temporarily pulls back during an upward trend. In this video, well discuss how to identify a bull flag pattern, how its used to determine potential buy signals and price targets, and the risks and goals of using this price pattern in your trading. Lets start with how to identify a bull flag pattern. This pattern forms in a time of consolidation, which makes this a continuation pattern. This means that when the price breaks out of the pattern, its likely to continue in the same direction it was heading before. In this case, the typical interpretation is that the price is likely to continue upward. The pattern begins when a stocks price rises from a low point to a high point. Or in other words, from the bottom of a support area to the top of a resistance area. The initial movement represents the flagpole in the pattern and is followed by a pullback that creates diagonal support and resistance levels. These diagonal le