The Bull Flag pattern can be a great entry for day trades and scalps. However, the pattern itself is meaningless without the support of volume and the market. When I see a Bull Flag pattern form on a 5 minute or lower timeframe, I want to also see two things in :
- Declining Volume – The volume bars are descending as the pattern is forming. It tells me that buyers and sellers are finding an equilibrium at the base of the flag.
- Positive SPX price action – The price action of the SPX is positive. SPX (or SPY ) is too consolidating or moving higher. The market uptrending candles on that timeframe will lend support for a push above the flag.
