> For the complete documentation index, see [llms.txt](https://smartmoney.gitbook.io/smart-money-concepts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartmoney.gitbook.io/smart-money-concepts/definitions/candlestick-patterns/flag.md).

# Flag

Continuation patterns

Flags are continuation patterns constructed using two parallel trendlines that can slope up, down, or sideways (horizontal). Generally, a flag with an upward slope (bullish) appears as a pause in a down trending market; a flag with a downward bias (bearish) shows a break during an up trending market. Typically, the flag's formation is accompanied by declining volume, which recovers as price breaks out of the flag formation.

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FcikA3HJ06DghDZF3ZrzT%2Fimage.png?alt=media&amp;token=a9c78d65-fdf7-47b3-894c-f26a57a58c33" alt=""><figcaption><p>Flag pattern</p></figcaption></figure>

References: <https://www.investopedia.com/articles/technical/112601.asp>