Bull Flags and Bear Flags

The speaker talks about the bull flag and bear flag, providing a brief overview and illustration using a real trading example.  The bull flag occurs during an uptrend; it is a continuation pattern which menas that a given chart will continue to go higher.  The initial upward thrust is known as the flag pole.&The speaker talks about the bull flag and bear flag, providing a brief overview and illustration using a real trading example.  The bull flag occurs during an uptrend; it is a continuation pattern which menas that a given chart will continue to go higher.  The initial upward thrust is known as the flag pole.  The creation of the flag pole is followed by a low volume consolidation which is followed by another breakout in price above resistance.

The speaker discusses how to calculate the upward price objective of the bull flag once it breaks out. 

The bear flag is exactly the opposite.  It is created during a downtrend; printing a downward thrust in price with a surge in volume.  A consolidation move will follow on light volume and within a narrow range.  The bears will then take over once again and the stock will break down through support.