A Flag Pattern is a technical analysis chart pattern that resembles a flag on a pole. It typically forms after a strong price movement, indicating a brief consolidation period before the price continues in the same direction. The pattern consists of two parallel trendlines that slope against the prevailing trend, creating a rectangular shape. Traders often look for a breakout from the flag pattern to confirm the continuation of the trend. The breakout usually occurs in the direction of the preceding price movement, providing potential trading opportunities. This pattern is commonly used in various financial markets, including stocks and cryptocurrencies.