This screen finds bull flag patterns. A bull flag is a technical continuation pattern which can be observed in stocks with strong uptrends. The pattern takes shape when the stock retraces by going sideways (or by slowly declining) after an initial big rise in price. When you see the graphical representation of this pattern, you’ll notice that it somehow looks like a flag on a pole.
The trading strategy in this article is based on a breakout from the Bullish Flag Pattern and can be applied to any timeframe. It is suited for swing and daytrading.
Bull Flags and Pennants are powerful chart patterns in technical analysis. The are called 'continuation patterns' as the flag embeds prices that are consolidating in a range after a strong move up.
In this video I discuss a number of potentially interesting shares that were spotted with the predefined screens in our stock screening tool Chartmill. At the same time I show you how to manage your risk properly using the position sizing tool.
In depth explanation of the bull flag pattern
This filters for the bull flag pattern.
This filters for a minimum average daily volume of 500K to ensure liquidity.