First and foremost, when flying the American flag, it should always be hoisted briskly and lowered ceremoniously. It should be flown from sunrise to sunset, unless properly illuminated during the night. If the flag is displayed on a flagpole, it should be positioned above all other flags. When multiple flags are flown together, the American flag should be on the right (the observer's left) and at the highest point.
The flag should never touch the ground or any other objects, nor should it be used as clothing, drapery, or bedding. It is important to prevent the flag from becoming soiled or damaged. When the flag becomes worn, torn, or faded, it should be respectfully retired by burning in a dignified manner. Alternatively, it can be surrendered to organizations that conduct flag retirement ceremonies (like us here at Flags Unlimited -- we dispose of USA flags properly)
During the national anthem or the Pledge of Allegiance, it is customary to stand facing the flag with the right hand over the heart. Military personnel in uniform should render a salute. When the flag is carried in a procession, such as during a parade, it should be held high and its position of honor respected.