Flags, wedges & the cup
Pauses, dying momentum, and slow rotations.
The bull flag
A near-vertical rally (the pole), then a tight, slightly falling drift (the flag) — profit-taking, not selling. The break above the flag continues the pole.
Wedges — momentum dying
Both lines rise but lows rise faster (rising wedge): each push costs more for less. The break usually comes through the steeper line, downward.
Cup & handle
A rounded U base, then a small drift near the rim — the final shakeout before breakout. A V-shaped cup is too violent to be accumulation; the handle deeper than a third of the cup is a failed setup.
Quick check
A flag that drifts down more than half the pole with rising volume is probably…
- Turning into a top, not a flag
- A stronger flag
- A guarantee of breakout
- A cup forming
A flag is a calm pause on fading interest. Real selling pressure during the drift invalidates the continuation idea.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.