What is the Bear Flag chart pattern?

Bull and bear flags are popular trend continuation patterns in technical analysis, but here, we will focus on the bear flag. What is the bear flag chart pattern strategy? A bear flag is a small price consolidation pattern that forms after a rapid price move in a downtrend.

What are the most popular bearish chart patterns?

There are dozens of popular bearish chart patterns. Here is list of the classic ones: Review this first to see the fair value gap: (1)Trades inside the -FVG (2) Rejects -FVG (MT) (3) Holds -FVG (L) Note: This is a high probability sign for moves higher, price trades inside the 4H-FVG.

What is a bearish pattern in trading?

In trading, a bearish pattern is a technical chart pattern that indicates a potential trend reversal from an uptrend to a downtrend.

What is a Bear Flag & how does it work?

As said earlier, the bear flag is a continuation pattern that facilitates the extension lower. As a chart pattern itself, the bear flag makes sure that traders are able to identify the stage which the downtrend is currently in. More precisely, the flag will tell us whether the consolidation phase is over as the sellers increase their pressure.