USDtb is a blockchain-based USD stablecoin primarily backed by BlackRock's BUIDL tokenized treasury fund. Learn more here.

 have become a cornerstone of the crypto ecosystem, providing stability in a market known for its volatility. Among recent innovations is USDtb, a new stablecoin from Ethena Labs that leverages BlackRock's tokenized funds to create a reliable digital dollar alternative. 

This article examines USDtb's unique structure, its relationship with Ethena's existing 

 stablecoin and the way it bridges traditional finance with decentralized systems to offer a differentiated risk profile for both retail and institutional users.

 is a blockchain-based USD stablecoin primarily backed by the BlackRock BUIDL tokenized treasury fund. It provides institutional-grade stability with 24/7 accessibility in volatile market conditions.

, USDtb follows a traditional fully-backed stablecoin model in which each token represents one US dollar. This structure ensures value stability and transparency through a direct 1:1 backing relationship.

Eighty percent of USDtb reserves are invested in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which holds cash, repurchase agreements and US Treasury instruments. The remaining 2% is held in stablecoins like 

, in order to maintain immediate liquidity during weekends or holidays when traditional treasury markets are closed.

, is known for USDe, its innovative synthetic dollar. The Ethena protocol bridges traditional finance with decentralized systems through sophisticated financial engineering and institutional partnerships.

Generally based on Arthur Hayes's early 2023 "Dust on Crust" blog post, Ethena has quickly established itself as a major player in the stablecoin ecosystem. The protocol employs 

 that pair spot crypto assets with corresponding short positions on derivatives exchanges, enabling impressive revenue while maintaining stability.

The Ethena ecosystem is governed by its native ENA token. With the introduction of USDtb, Ethena expands its offerings to include a fully-backed stablecoin supported by BlackRock's institutional-grade BUIDL fund, thus diversifying its solutions to suit different market conditions and users.

BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is a tokenized money market fund that invests in dollar-equivalent assets, including cash, US Treasury bonds and repurchase agreements. Developed in partnership with Securitize, a leading 

 tokenization company, BUIDL represents BlackRock's entry into the tokenized treasury space.

BUIDL is cross-chain compatible, operating across multiple blockchains including Ethereum, 

. As the largest tokenized fund of its kind, BUIDL provides institutional-grade backing for USDtb, lending credibility to the stablecoin through BlackRock's established reputation in traditional finance.

USDtb represents Ethena's strategic approach to creating a more resilient ecosystem that can weather various market conditions, while bridging the gap between DeFi innovation and traditional financial systems. Following are some of its characteristics.

USDtb operates as a blockchain-based stablecoin through a sophisticated infrastructure designed for independence, transparency and security. Unlike traditional dollars, USDtb enables faster and cheaper transactions, while maintaining stability through institutional-grade backing.

The minting and redemption process occurs through a 

 system with strict controls. Only verified

 checks can mint or redeem USDtb directly. The system’s safeguards include maximum mint/redeem limits per block and whitelisted custodian addresses to prevent manipulation.

For transparency, USDtb maintains visible on-chain 

 and publishes monthly fund administrator NAV reports. Holders can use USDtb just as any digital dollar for payments, trading or storing value, though they receive no governance rights or claims to income generated by the backing assets.

USDtb offers the following four key benefits that make it a distinctive and valuable addition to the digital asset ecosystem.

USDtb delivers institutional-grade security through its strategic backing by BlackRock's BUIDL fund, which comprises over 80% of its reserves. This partnership leverages BlackRock's trillion-dollar asset management expertise, providing unparalleled stability and trust.

The USDtb stablecoin's sophisticated legal framework features a bankruptcy-remote structure, while its core smart contracts have successfully passed three comprehensive security audits by industry leaders Pashov Audit Group, Quantstamp and Cyfrin.

USDtb creates powerful bridges between traditional finance systems and cryptocurrency markets. For institutions, it serves as a low-friction entry point to digital assets without requiring users to navigate the complexities of volatile cryptocurrencies.

For individual users, USDtb is designed for seamless integration across DeFi protocols, use as collateral on 

 (CEXs) and prime broking venues, and direct accessibility for TradFi institutions — expanding its role within both digital and traditional financial ecosystems.

USDtb combines world-class expertise from multiple industry leaders. Ethena has demonstrated remarkable execution capability by scaling USDe to over $6 billion in market cap, while BlackRock brings unmatched credibility and treasury management expertise.

In addition, Securitize contributes cutting-edge tokenization technology as the recognized leader in converting real-world assets to blockchain tokens, creating a stablecoin with institutional pedigree, which is rarely seen in cryptocurrency markets.

Unlike TradFi systems that are constrained by business hours and settlement windows, USDtb operates continuously on blockchain infrastructure. This enables round-the-clock trading, transfers and redemptions, regardless of traditional market hours.

The strategic 20% stablecoin reserve ensures seamless redemptions, even during weekends or holidays — when treasury markets are closed — thus eliminating cross-border friction and enabling value transfers in minutes (rather than days).

USDtb's forward-looking strategy focuses on expanding its ecosystem presence and institutional adoption throughout 2025. The project aims to establish USDtb as a reliable dollar alternative, with multiple avenues for growth.

Looking toward broader financial applications, Ethena plans to incorporate USDtb into new DeFi offerings, including perpetual swap trading, prediction markets and undercollateralized lending solutions. These expanded use cases aim to increase USDtb utility beyond simple transfers.

USDtb operates as a fully collateralized stablecoin with a straightforward 1:1 peg to the US dollar. Each token is backed by institutional-grade assets, primarily BlackRock's BUIDL treasury fund (80%) and USDC reserves (20%), creating a stable digital dollar alternative.

The token supply expands and contracts, based on market demand, through a controlled minting and redemption process. New USDtb can only be created when onboarded users deposit equivalent value in approved assets, ensuring the backing never falls below 100%.

Distribution follows a hybrid model: initial minting is restricted to KYC-verified participants, but once in circulation, USDtb tokens trade freely across blockchain ecosystems with no transfer restrictions. This approach balances regulatory compliance with the open accessibility expected within 

USDtb is purely a transactional asset, with no governance functions. Holders receive no voting rights, participation in management decisions or claims to revenue generated by the backing assets — keeping the token's purpose clear as a stable medium of exchange and store of value.

Looking to trade USDtb tokens? Bybit now offers the USDtb/USDT Spot trading pair. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is launching a 30-day promotional event with a 5% APR on USDtb holdings, as well as a permanent rewards program. Find out more 

Minting/Redeeming USDtb directly requires KYC and onboarding, in addition to following a structured verification process:

: Prospective users must first confirm they’re in a permitted jurisdiction by reviewing the 

: Qualified entities should make contact via this 

 to begin the evaluation process and determine suitability.

: All applicants must complete comprehensive know-your-customer and anti–money laundering verification. This process is thorough, and is designed to meet institutional compliance standards.

: Upon successful verification, users may be onboarded at their discretion, subject to the USDtb Terms and USDtb Mint User Agreement.

: Whitelisted users can then deposit approved assets into the system and receive newly minted USDtb through the secure smart contract infrastructure.

The direct minting process is primarily designed for qualified institutional participants who can meet the regulatory and compliance requirements.

While USDtb offers institutional-grade stability in the stablecoin market, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its institutional backing and integration with Ethena's ecosystem, USDtb shows promise as a stable digital dollar alternative, particularly during market downturns. However, potential investors should 

 and consider their goals before investing, as USDtb is primarily a stability tool, rather than a yield-generating asset.

USDtb merges BlackRock's institutional credibility with blockchain technology's accessibility, creating a powerful bridge between traditional finance and decentralized systems. With its secure backing structure, utility during times of market volatility and an ambitious integration road map, USDtb is positioned to become a significant player in the digital dollar ecosystem.

Intermediate

usdtb.png

USDtb: The Ethena stablecoin backed by BlackRock's digital funds

Stool Prisondente (JAILSTOOL) is a meme coin launched on Solana, which stems from an inside joke within Dave Portnoy's Barstool Sports community.

Meme coins thrive on hype, but few have the backing of an internet icon like Dave Portnoy. Stool Prisondente (JAILSTOOL), a Solana-based token, was born from a joke about Portnoy’s hypothetical imprisonment, and has since become a real, tradable asset. Its rise highlights the ongoing Solana meme coin frenzy — as speculation meets sheer internet absurdity.

But is JAILSTOOL just another flash-in-the-pan meme coin, or could Portnoy’s influence push it toward becoming something bigger? This article will cover everything you need to know, from its origins and market performance to the risks of trading a coin driven entirely by online sentiment.

The Solana meme coin scene is a high-stakes, high-reward battlefield, where new tokens rise and fall within days — sometimes hours. Recent months have been particularly wild:

Unlike many meme coins that pop up without real backing, JAILSTOOL’s so-called Portnoy effect sets it apart.

, a media empire built on sports, pop culture and internet controversy. Portnoy is a polarizing figure, known for his unfiltered takes, viral rants and ability to move markets through sheer personality — whether in stocks or crypto.

During the 2021 crypto bull run, Portnoy dabbled in Bitcoin (BTC), Dogecoin (DOGE) and other speculative assets, often live-streaming his trades to his millions of followers. Though his crypto track record is mixed, his ability to command attention is undeniable.

This influence has played a major role in JAILSTOOL’s rapid rise.

The origin of Stool Prisondente, a meme coin launched on Solana, stems from an inside joke within the Barstool Sports community. Its name references a hypothetical scenario in which Portnoy ends up in prison — a concept that his audience found amusing enough to turn into a cryptocurrency.

The token was minted shortly after Portnoy publicly expressed interest in getting reinvolved with meme coins. Seizing the moment, opportunistic traders launched JAILSTOOL — and, thanks to Portnoy’s implicit endorsement, it quickly gained traction.

Though Stool Prisondente has no fundamental utility, its value lies in community engagement and the ongoing meme-driven trading culture that has defined Solana’s recent market dynamics.

 a fully diluted valuation (FDV) of $9.35 million, with a 24-hour trading volume of $12.45 million. The token hit an all-time high (ATH) of $0.2179 on February 9, 2025, when it reached a peak FDV of over $209 million. However, it has since plunged by over 95%, highlighting the extreme volatility of meme coins, and is currently 17.3% above its ATL of $0.007417 on February 18, 2025. 

The coin has experienced wild price swings typical of meme-driven assets. Early traders saw huge gains, while latecomers have been caught in inevitable sell-offs. This volatility is a feature, not a bug, and is what makes meme coins both exciting and incredibly risky.

 have directly impacted JAILSTOOL’s price movements. His ability to drive engagement and trading volume is reminiscent of Elon Musk’s influence over Dogecoin.

Several of Portnoy’s recent tweets have kept the coin’s momentum alive, with traders hanging onto every word for potential buy or sell signals. However, Portnoy himself has been careful not to overcommit — and therefore, likely to avoid any regulatory scrutiny.

Still, the mere association with Portnoy has been enough to sustain interest, proving once again that in the meme coin market, narrative often outweighs fundamentals.

For all its hype, JAILSTOOL is a high-risk asset, and potential investors should proceed with caution. Here’s why:

In short, investing in JAILSTOOL is more like betting than traditional investing. If you’re in it, you’re speculating on the next viral moment, rather than long-term value.

Stool Prisondente (JAILSTOOL) is a prime example of the modern meme coin era — a joke that turns into a multimillion-dollar token through hype, community engagement and effective influencer backing. Its association with Dave Portnoy has given the meme coin a stronger foothold than most new ones.

For those looking to trade JAILSTOOL, it’s now available on Bybit, where users can access the 

Beginner

jailstool.png

Stool Prisondente (JAILSTOOL): Dave Portnoy–Backed Meme Coin

Canary Capital, led by former Valkyrie co-founder Steven McClurg, has filed with the SEC to launch an ETF tracking Axelar’s AXL token, citing its strong developer team and growing institutional adoption. 

The S&P 500 gained 1.12%, led by materials, consumer discretionary, and industrials, after a one-month auto tariff exemption. Gold dipped 0.1% to $2,913.79, holding above $2,900 amid tariff concerns and ahead of U.S. payroll data. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 3.42%, with Bitcoin and Ether rising by 4.24% and 2.71%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is KAITO, which surged nearly 6.51% following the announcement of Kaito AI powering FalconX’s AskFocal to enhance crypto market insights.

Kaito (KAITO), founded in 2022, is an AI-powered crypto search engine that indexes web3 sources beyond traditional search engines. Priced at $1,099/month, it gathers data from platforms like Twitter, Discord, and research papers, using AI to filter noise and assess sentiment. 

, an AI-driven platform helping 80+ funds managing $10B+ navigate crypto markets by analyzing sentiment and filtering data from partners like CoinGecko and Token Terminal.

Check Out the Latest Prices, Charts, and Data of 

Canary Capital, led by former Valkyrie co-founder Steven McClurg, has filed with the SEC to launch an ETF tracking Axelar’s AXL token, citing its strong developer team and growing institutional adoption. Axelar, a cross-chain protocol integrated by J.P. Morgan, Microsoft, Uniswap, and MetaMask, enables secure blockchain interoperability. Former Coinbase legal chief Brian Brooks has joined Axelar’s new Institutional Advisory Board to support regulatory alignment. McClurg believes AXL will become a top-20 token as the market recognizes its potential.

Yesterday, BTC Spot ETFs saw a total net outflow of $6.9M, with no change in GBTC and the entire outflow coming from non-GBTC funds.

, a game server platform, raised $13.5M in funding and is backed by Bitkraft, Solana, and Polygon. Its Beamable Points Program is live, allowing users to earn points for a potential airdrop. The "Day 1 OG Badge" claim ends in 6 hours, so users should quickly create an account, complete tasks, and claim the badge.

3.png

Canary Capital Files for Axelar ETF as Institutional Adoption Grows

Aave's new proposal outlines a major update to its tokenomics, focusing on revenue distribution, risk management, and a buyback initiative.

The S&P 500 dropped 1.22%, with most sectors down except tech, which gained on chipmakers and crypto stocks. Gold rose to $2,918 as US tariffs weakened the USD, fueling safe-haven demand amid recession fears. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 1.02%, with Bitcoin and Ether rising by 1.02% and 3.20%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is ADA, which surged nearly 18.4% following major developments, including its inclusion in the U.S. Crypto Strategic Reserve, governance advancements, and staking updates.

Cardano (ADA), founded in 2015 is a third-gen Proof of Stake blockchain designed to address scalability issues. Its five-phase roadmap—Byron (launch), Shelley (decentralization), Goguen (smart contracts), Basho (sidechains), and Voltaire (governance)—aims to make Cardano fully decentralized and self-funded. 

 ADA’s inclusion in the U.S. Crypto Strategic Reserve, an upgraded staking rewards calculator, and IOG’s new documentary on Cardano’s governance. Other key updates include Babel Fees for flexible payments, the 2025+ governance roadmap for on-chain voting, and the launch of the Cardano Development & Ecosystem Cooperative (CDEC) to drive decentralized innovation.

 outlines a major update to its tokenomics, focusing on revenue distribution, risk management, and a buyback initiative. It retains rewards for GHO stakers while introducing “Anti-GHO,” a non-transferable token earned by AAVE and StkBPT stakers. The “Umbrella” safety system is designed to reduce the impact of bank runs and safeguard against bad debt. Additionally, the proposal suggests forming the Aave Finance Committee (AFC) to manage a $1M/week AAVE buyback over six months. With DeFi expanding and Aave leading at $17.5B in total value locked, buybacks are increasingly used to boost investor confidence and ecosystem resilience.

Yesterday, BTC Spot ETFs had a net outflow of $143.5M, with GBTC unchanged and all losses from non-GBTC funds.

 token on Ronin on March 11 after migrating from Avalanche. The 7B supply token will fuel the game's ecosystem, with 50% allocated to community incentives, including airdrops and staking rewards. A community sale via Ronin Launchpad offers FAME at $0.00429 before launch. The game, backed by NBA stars and brands like Gatorade, aims to expand its sports gaming presence.

Aave Proposes Tokenomics Revamp with Safety System, Revenue Redistribution, and Buybacks

Trading

Trading the bull flag pattern helps you to spot continuations in price and capture large price swings. But does it work in crypto? Learn more.

Bull-Flag-1024x526.jpeg

Identifying-the-bull-flag-1024x526.jpeg

Flag-vs-Pennant-e1614743891983.jpeg

Directional-Movement-.jpeg

lower-low-in-downtrend-channel.jpeg

Stop-loss-and-entry-point.jpeg

Flagpole-price-range-1024x606.jpeg

Bullish-vs-Bearish-1024x514.jpeg

Entry-and-Stop-loss-Level-1024x620.jpeg

Swing-low-after-stop-loss-1024x570.jpeg

Spotting-bull-flag-1024x600.jpeg

Trading the bull flag pattern helps you spot continuations in price and capture large price swings with ease. Usually, it’s tough to enter into a fast-moving trade within a market, but it’s easier to time the market with the bull flag chart pattern.

In fact! Did you know the most explosive moves in any market (stock, forex, commodity, or cryptocurrency) are the result of price pattern breakouts such as flags?

The best traders in the world have many trading strategies in their arsenal. However, one of the most popular is the bull flag pattern, along with its counterpart, the bear flag. These patterns allow traders to participate in trending markets, understand price moves, and establish low-risk entries.

Whether you’re a beginner or experienced trader, here’s an overview of what this chart pattern is all about. Here’s what you’ll learn:

A bull flag is a technical pattern that provides an accurate entry to participate in a strong uptrend. Many professional traders use this continuation pattern to find the optimal place to trade with the trend.

It’s important to note that the bull flag pattern perfectly suits cryptocurrency market conditions because of the powerful trends from which savvy investors can benefit. Whether you intend to use this flag pattern for 

, it works very well. Flag patterns are beneficial for trading after a breakout or during a strong trending market.

In short, the main purpose of the bull flag pattern is to help you participate in the current momentum of the market. That means you can leverage the information it provides to determine entry levels where risk is low compared to the possible reward. From the visual perspective, this pattern has a previous strong movement to the upside (the pole) and then a consolidation that takes the form of a flag.

The following BTCUSD 15-minute chart is an excellent example indicating the main elements that create the bull flag pattern.

In essence, the bullish flag formation has three main features:

2. A downward sloping consolidation, aka the flag

3. The continuation following the break of the upper channel resistance

Identifying the bull flag formation in real-time provides an edge in the market, particularly for crypto traders. This is because it helps identify the areas where corrective action occurs before the previous trend continues.

First of all, however, we need to know the key features to look for when trading the bullish flag pattern. This chart pattern must include previous momentum, usually represented by consecutive bullish bars to the upside.

Later on, corrective action should take the form of consolidation. Usually, the price correction can be framed within a downtrend channel, pennants, triangles, or sideways action.

The third stage of the bull flag pattern is the break of the flag, which provides the ideal entry signal.

The bullish flag pattern’s initial profit target will be around the previous swing high, and the stop-loss order can be placed below the consolidation structure.

Additionally, the bull flag profit target can be established by measuring the distance in price between the flagpole’s base and the highest point of the flag. To pinpoint your exact profit target, you need to project the measured move to the upside starting from the breakout point.

The below BTCUSD 15-minute chart clarifies the details of this formation.

Finally, follow these steps to identify the bull flag pattern:

Identify directional movement to the upside. Usually, this momentum can be framed under consecutive bars to the upside, with very few retracements bars.

Wait for corrective action. Usually, this correction can be framed under a downtrend channel, where a structure like a lower low can be presented.

Define the breakout level to enter the order. More details about the trading execution are presented in the next section.

At first glance, flag chart patterns look almost identical to pennant patterns. They are both continuation patterns that form whenever there’s a sharp price movement, followed by a sideways price movement. Usually, they only last around one to three weeks. But despite the similarities, there are indeed some differences. 

. It’s normally characterized by converging trend lines, which occur when successive highs and lows form a trading range. With the steep move up or down, it’s consolidated in the pennant form, with descending resistance and rising support. Generally, you would want to use pennants in conjunction with other 

 to serve as confirmation. A good practice is to use the 

(RSI) indicator to moderate during the consolidation phase and reach oversold levels.

A flag pattern forms when a steep rise (or fall) is first followed by trading in a narrow price range, then by a steep rise (or fall). Typically, a flag helps to make sure the candle closes above the 

To succeed in trading with flags or pennant chart patterns, it’s wise to always use volume as a guide to deciding on your entry and exit points of a target price. That’s because it’ll help you to confirm the breakouts and to speculate on the momentum after it.

Ultimately, the patterns may or may not be defined at a particular time. However, as long as you’re patient, they will form at the right time.

Now that we know how to identify the bull flag pattern, it’s important to define specific criteria to understand how to trade it.

After the flag pattern has been identified, the entry should be located where the downtrend channel (the structure that frames the flag) fails to keep its downward momentum.

The long entry must be placed at the break of the flag, while the stop-loss order (risk) should ideally be placed below the consolidation flag. The first target should be around the previous swing high. If the trend is strong enough, the movement will continue.

Of course, trade management varies. It mainly depends on the style of each trader. Still, one good strategy is to close a part of the position around the previous swing high. Then, trail the stop-loss order based on a 

 provides a detailed, step-by-step guide to identify a bull flag and trade it effectively.

First of all, the prevailing trend must have strong bullish momentum, as mentioned above. This momentum is usually framed under consecutive bullish bars to the upside, with very few corrective actions.

The directional movement is strong in the image below, and there are only a few small retracements. 

Secondly, we must wait for the consolidation. In this case, after a lower high is made, a line for a downtrend channel can be drawn, and we can be ready for the break of the flag if it occurs.

When the flag is broken by the price, the long entry is triggered. At the same time, the stop loss would be placed at the opposite side of the flag pattern. The red area represents the risk (the amount of money that we may lose), and the green area represents the potential reward.

After the entry is triggered, it’s time to wait and see what happens. In this example, the price goes straight to the previous swing high. 

Trade management should be done based on the trader’s risk profile. The fastest way to cash in some profits is to close only a portion of the position around the target area and let the rest of the position run. 

Alternatively, you can close the entire position all at once by projecting the flagpole price range to the upside. For this particular example, the price keeps going, making new highs. 

Bear in mind that many bull flag trading strategies are based on different price formations and shapes of the flag. The period of consolidation that forms the flag can take the following shapes:

The anatomy of a breakout consists of three stages:

 (flag price structure) should be well-defined within two down-sloping parallel trend lines.

, a genuine breakout, occurs when the price spikes through the upper resistance line. The key element is that the breakout needs to be accompanied by heavy volume.

, in which a breakout is confirmed by the price closing above the upper resistance line, along with sustained follow-through buying above the flag.

The consolidation that makes up the flag tends to have well-defined support and resistance levels. While the consolidation shows equilibrium between the forces of supply and demand, it can also be seen as the calm before the storm.

Because the prevailing trend is upward, there’s a higher probability of trend continuation and, subsequently, an upward breakout. Usually, investors who have accumulated and bought into the cryptocurrency during the initial rally still hold their bags. Then, during the consolidation phase, investors who have missed the initial drive-up will try to get their hands on the cryptocurrency as well.

The excessive buying interest will eventually cause an imbalance between supply and demand forces and drive the price higher.

In conclusion, it’s important to understand that most trends are the result of a breakout.

The difference between a bullish and a bearish flag is in the direction of the price movement. With the bullish flag, the idea is to participate in a strong uptrend. Meanwhile, with the bearish flag pattern, the idea is to trade short in the direction of the prevailing downtrend.

Cryptocurrency provides the opportunity to find both bullish and bearish flags. This is because it’s a market with high volatility (directional movements), where opportunities to trade long or short are presented almost daily, depending on the execution time frame.

In general terms, the trading concepts for a bullish flag listed in this guide can be applied to the bearish flag as well.

To better understand how to identify a bearish flag pattern and trade the continuation move, we’ll outline a trade example.

, the price is trading sideways between the support of $1,685 and the resistance of $1,720 (the two areas are highlighted in light blue). Notice how the price breaks the support to the downside. At this point, there are only two possible outcomes:

1. A continuation of the breakdown, in which the immediate downtrend continues.

2. A failed breakout that reverses the prices back to the previous range.

Therefore, if we want to play the continuation for the breakout, we should wait for some corrective action (the flag) to participate in the downtrend.

The bearish flag pattern offers low-risk entry points if you enter on the breakout of the flag formation. We’ll use the same entry concepts that are applied to the bullish flag pattern.

In the next chart, we can see that the price makes a higher low, a point from which we can draw the flag. If the higher low is unable to hold, the ideal entry will be below that price structure.

The entry-level and stop-loss level is illustrated in the next chart.

At the next stage, the price eventually breaks below the flag and triggers the short entry.

The previous swing low is essential if we want to define the strength of the sellers — or, in other words, the strength of the downtrend. If the price is unable to break it, the downtrend might not have enough momentum. In this case, we may have to tighten our 

Effectively, after the price breaks the swing low, the downtrend continues to the next level of support (blue line).

This example illustrates the dynamic of how to spot and trade a bearish flag. It also clarifies the similarities with the bull flag pattern, which has the same core properties. The only difference between the bull flag and the bear flag is in the direction of the prevailing trend.

In general, flag patterns and pennants are reliable. The bull flag has been proven to work and is used by profitable traders around the world. Of course, trading is full of uncertainties. Still, these indicators and chart patterns offer traders certain confidence. However, they come with a set of pros and cons — and bull or bear flags are no exception.

• A bull flag breakout provides a well-defined price level to enter a long trade. It establishes a clear place for the stop-loss order, thereby providing the right support for proper trade management.

• Usually, this pattern provides asymmetrical risk-to-reward scenarios in which the potential profit (target) is larger than the risk. In other words, it’s a pattern that offers the basis for a good risk management system.

• The bull flag pattern is a simple formation to use in a trending market. The steps to identify the pattern are clear-cut.

The main risk of the bull flag pattern is the potential for 

. Some people may experience negative results executing this pattern because the context is not framed under a trending environment but, rather, a sideways market.

To minimize the risks and increase the chance of success, spend your time studying several bull flag charts so that you can get used to its action. This way, when it’s time to execute the pattern, it will come more naturally.

What Is A Bull Flag Pattern (Bullish) & How to Trade With It

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards