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Chart formations · 8 min read

Bull and bear flags: the pause can become something else.

Distinguish an impulse, a smaller corrective sequence and a later crossing without assuming the impulse high or projected target was reached.

One question to answerWhat does crossing the corrective channel actually establish?

The lesson on YouTube

Watch. Then work through the idea.

Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.

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What is actually happening?

A flag candidate describes a faster move followed by a smaller correction against it. A bullish example follows an advance with a descending corrective channel; a bearish mirror reverses those directions. Definitions of depth, duration and slope must be stated.

Keep the boundary clear. If every correction can be redrawn as a flag, the definition cannot fairly distinguish failures.

Guided example · Selected swings and later closes · synthetic schematic

A local flag break is one event

Keep the impulse high separate from the corrective reference.

Restart & example assumptions

Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.

For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.

Make the conditions explicit.

01 / CONTEXT

The source example advances from 100 to 112. Fix the corrective boundaries before evaluating any later crossing.

02 / TRIGGER

In this exercise, a completed close above the corrective upper reference at 109 is a local event. Check the earlier impulse high at 112 separately.

03 / CANCEL OR INVALIDATE

If the correction breaches your declared depth limit or later progress returns inside, record the relevant failed condition rather than drawing a new flag around it.

The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.

What can this cost?

A projected impulse distance is not an executable profit guarantee. Check available room, actual entry, protective order and friction independently.

Calculate the size from your assumptions

How the idea can fail.

The correction can deepen into a broader decline. A crossing can also be followed by a return inside before the old high is exceeded.

Practical habit

Record the impulse, correction and candidate event as separate stages.

Go one level deeper

Include non-triggering candidates and failed continuations. A gallery of attractive winning flags is not a representative sample.

Check your understanding

Price closes at 110 after crossing a corrective reference at 109; impulse high was 112. What is established?

Choose one answer

Further reading & boundaries

These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.

Editorial revision: 13 October 2026 · Synthetic data · Educational use

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