A bull flag is a technical chart pattern that indicates a potential continuation of an upward trend in a financial market. It typically forms after a strong price increase, followed by a period of consolidation where the price moves sideways or slightly downward. This consolidation resembles a flag on a pole, hence the name. Traders often look for a breakout above the upper boundary of the flag pattern as a signal to enter a long position. The expectation is that the price will continue to rise, following the initial upward movement, providing potential profit opportunities for investors.