FLAG pattern in an Uptrend – BPCL

For a Bullish FLAG pattern, we need a steep price rise (steeper pole) and a few days of horizontal range-bound movement for a few days (4 – 7 days). Price is expected to continue it’s prior trend after the horizontal movement for a few days – completing the Flag pattern. Flag should not drift lower in this case. Volume should be low during the Flag formation & higher than average during break-out which ensures good momentum.