Let's understand the pattern that constantly triggers in the crypto markets. A bullish flag is not just a fancy name; it's a real tool for entering a trend with a good probability.

The essence is simple. After a sharp rise, the price makes a small pullback but does not reverse. This movement is called a flag. It looks like a small channel within the main upward trend. When you see such a picture, you should be ready for the next surge upward.

What is happening here? First, there is the flagpole — a strong impulse upward with good volume. Usually, this is the result of positive news or simply strong buying demand. Then people take profits, the price pulls back slightly, but not much. A flag forms — a sideways or slightly downward movement within a narrow range. This is the moment when buyers accumulate positions before the next surge.

When the price breaks above the upper boundary of the flag with increased volume, the trend continues. This is your signal to enter. See the breakout — enter.

How to trade this pattern? The entry point is the breakout of the upper line of the flag, definitely confirmed with volume. Place your stop-loss below the flag’s minimum to protect against false breakouts. The profit target is calculated as follows: take the height of the flagpole and add this length to the breakout point. It results in roughly the same growth as before the flag formation.

What should you pay attention to? High volume during the flagpole indicates the seriousness of the movement. Weak correction inside the flag suggests that buyers are not giving up their positions. And most importantly — volume should increase on the breakout. If the breakout occurs on weak volume, it could be a trap.

Right now, such situations are often seen in the market. BTC holds around 78.43K with a 2.43% gain over the day, GALA and NOT show small negatives, but that doesn’t mean there are no interesting flags there. The pattern works on stocks, forex, cryptocurrencies — everywhere there is a trend and people are taking profits.

If you learn to see and trade the bullish flag correctly, you can catch good entries into strong trends. The main thing is to wait for confirmation of the breakout with volume and not rush to enter too early. Risk management works well here because the stop-loss is close to the entry, and the potential profit can be significant.