A bull flag needs 3 key ingredients
1. Flagpole (strong impulsive move up)
• QQQ ran from ~$563 (5 Aug) to ~$583 (14 Aug)
2. Flag (controlled consolidation)
• The consolidation after 14 Aug hasn’t just been a tight downward drift; instead, QQQ dropped sharply to ~$563 (not shallow, that’s a full retrace)
• Bounced, but then chopped sideways inside a descending channel
• It looks more like a bearish channel than a neat flag that’s hugging the 50% retrace level
3. Volume & structure
• In a bull flag, you want volume drying up during the pullback
• The selling volume stayed heavy at times
• The “flag” portion is wider, choppier & longer in time than a bull flag (which is usually 1/3 the length of the pole)
This pattern is flag-like, but it leans closer to a descending channel/consolidation than a bull flag
• If bulls can break $575 on rising volume, it becomes a flag breakout
• If QQQ slips under $568, then it invalidates the bull flag & resolves bearish (a continuation of the down-channel)
It can be a bull flag, but right now it’s an ambiguous consolidation that will only prove itself with a breakout over $575
• If QQQ breaks $575 with conviction, the projected target = $583 + $20 = ~$603
1. Flagpole (strong impulsive move up)
• QQQ ran from ~$563 (5 Aug) to ~$583 (14 Aug)
2. Flag (controlled consolidation)
• The consolidation after 14 Aug hasn’t just been a tight downward drift; instead, QQQ dropped sharply to ~$563 (not shallow, that’s a full retrace)
• Bounced, but then chopped sideways inside a descending channel
• It looks more like a bearish channel than a neat flag that’s hugging the 50% retrace level
3. Volume & structure
• In a bull flag, you want volume drying up during the pullback
• The selling volume stayed heavy at times
• The “flag” portion is wider, choppier & longer in time than a bull flag (which is usually 1/3 the length of the pole)
This pattern is flag-like, but it leans closer to a descending channel/consolidation than a bull flag
• If bulls can break $575 on rising volume, it becomes a flag breakout
• If QQQ slips under $568, then it invalidates the bull flag & resolves bearish (a continuation of the down-channel)
It can be a bull flag, but right now it’s an ambiguous consolidation that will only prove itself with a breakout over $575
• If QQQ breaks $575 with conviction, the projected target = $583 + $20 = ~$603
I am not a licensed professional & these posts are for informational purposes only, not financial advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I am not a licensed professional & these posts are for informational purposes only, not financial advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.