Bullish Flags and Pennants Quiz: Test Your Knowledge

Question 1

A flag or a pennant is a continuation pattern. What does that actually describe?

Accepted Answer

A brief pause inside a trend that usually resolves with another move in the same direction

Question 2

After a sharp move up, how does a healthy bullish flag usually behave?

Accepted Answer

It drifts gently downward in a small, orderly channel against the prior move

Question 3

A bullish flag retraces more than about half of its flagpole. What should that tell you?

Accepted Answer

Be cautious, because a pullback that deep starts to look like real selling rather than a pause

Question 4

How does a pennant differ in shape from a flag?

Accepted Answer

It converges into a small symmetrical triangle that coils to a point

Question 5

A pair runs about 80 pips into a flag, then breaks out. Where does the measured move suggest you aim?

Accepted Answer

Around 80 pips beyond the breakout, projecting the flagpole height in the trend direction

Question 6

Why do most traders wait for a candle to close beyond the flag boundary before entering?

Accepted Answer

A clean close beyond the boundary filters out many false breaks where price only pokes through

Question 7

A flag forms in the middle of a choppy, directionless market. Why is that a weak setup?

Accepted Answer

There is no strong trend to continue, so the edge that makes the pattern work is missing