[EDUCATIONAL] BULL Flag on ETH/USD - Full Explanation

In this technical analysis we are reviewing the price action on Ethereum. The confirmed bull flag is a very powerful signal and I will be explaining how you can trade it.

Both flags and Pennants are quite similar to each other and have proven to be powerful chart patterns in technical analysis. They are considered 'continuation patterns'. First of all it is important to understand where the name is coming from.

If you look at the picture to the left you should get a pretty good idea. The price goes up strongly (in case of a bullish pattern, downwards for bearish) and then enters a moment of soft consolidation with a slight bearish trend (or in case of a bear flag it should be bullish, you get the point).

The price is expected to continue in the direction of the move it had seen before (in this case the strong upwards momentum) after it breaks out of the flag. Ethereum has JUST confirmed the breakout on the bull flag, which should indicate a bullish continuation according to this pattern.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!