Bear Flag
BearishReliability: HighAlso called · falling flag
A sharp drop, a narrow bounce, then continuation lower.
How to spot it
- A sharp drop for the pole, then a gentle bounce for the flag
- The bounce comes without volume
Why this shape forms
A sharp drop followed by a narrow bounce. The bounce being tight and lifeless is the whole signal.
Where it actually means something
There has to be a clear impulse down in front of it. A bounce after a long grind along the lows is not a flag.
What else to check
Volume should fade through the bounce. Heavy volume on the bounce may mean the trend is actually turning.
This means you're wrong
Void if the bounce recovers the start of the pole.
The mistake beginners make
Mistaking the bounce for a bottom.
Easy to confuse with
A steep bounce is a retracement, not a flag. The textbook version drifts up gently.
Real examples from the community
Loading…
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.