What is the win rate for bull flag patterns?
Quick Answer
Bull flag patterns have approximately 67% win rate when traded with proper breakout confirmation.
Detailed Explanation
The bull flag is a continuation pattern with about 67% success rate. It forms after a strong upward move (the pole) followed by a slight downward-sloping consolidation (the flag). The pattern works because it represents a brief pause in a strong trend before continuation. Volume should decrease during flag formation and surge on breakout.
Key Points
- 167% win rate with confirmation
- 2Flag should retrace less than 50% of pole
- 3Duration typically 1-4 weeks
- 4Volume decreases during consolidation
- 5Target = pole height from breakout
Example
Stock rises from $100 to $120 (pole = $20), consolidates to $115, breaks out. Target = $135 ($115 + $20).
Related Questions
What is the success rate of cup and handle patterns?
The cup and handle pattern has a 65% success rate according to Thomas Bulkowski's research on over 1,000 patterns.
Which direction do ascending triangles usually break?
Ascending triangles break upward approximately 75% of the time, making them bullish continuation patterns.
What is the success rate of double bottom patterns?
The double bottom pattern has a 66% success rate as a bullish reversal pattern.