What is a Bear Flag pattern?

The bear flag pattern is a popular price pattern used by technical traders within the financial markets to determine trend continuations. This article will explore bear flag trading opportunities, and will cover: What is a bear flag? A bear flag is a technical pattern that provides an extension/continuation to an existing downward trend.

Is the Bear Flag a reliable price pattern?

The bear flag is regarded as an extremely reliable price pattern when all its unique formation features are adhered to. The table below identifies the advantages and limitations of the bear flag chart pattern: The bear flag and bull flag represent the same chart pattern, however they are reflected in the opposite direction.

What is the difference between a Bear Flag and a bull flag?

The bear flag and bull flag represent the same chart pattern, however they are reflected in the opposite direction. Both bull and bear flag patterns entail a flagpole, consolidating price channel and a take profit projection measured from the length of the initial flagpole.

What are bearish Flags & why are they important?

Bearish flags are formations occur when the slope of the channel connecting highs and lows of consolidating prices after a significant move down is parallel and rising. The trend before the flag must be down. Why are Bullish and Bearish Flags important? Flags imply that the market cannot decide whether to break up or down.