Teaching: Bullish Flag Pattern

Let's break down a powerful bullish continuation pattern. The bullish flag pattern is a clear signal that the market will continue to rally, meaning the rocket is just about to take off. This is a great opportunity to get in before the next wave of upward movement.

On the chart, it looks like this:
1. Flagpole: Price surges straight up with massive volume, with the main funds directly overcoming all resistance levels.
2. Flag: Price enters a convergence zone, forming a symmetrical triangle. The highs gradually decrease, and the lows gradually rise. Volatility and trading volume quickly taper off.

What's the logic?
After a strong surge, the market takes a brief breather. Retail traders panic and take small profits before running, fearing a reversal. Meanwhile, the big players quietly accumulate within this narrow range. The spring is compressed to its limit. Once enough liquidity is gathered, a violent breakout follows.

How to trade:
- Entry: Enter strictly when the price breaks above the upper trendline of the triangle. Preferably wait for a solid volume-confirmed bullish candle to close.
- Stop-loss: Place it below the lower boundary of the flag to protect your position from being blown out prematurely.
- Take profit: Measure the height of the initial flagpole, then project that distance upward from the breakout point to take most of the profit.

The most important principle:
Never act inside the convergence zone. Be patient and wait for a clear upward breakout signal before opening a long position.

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