Bear Flag
Also known as: Bearish Flag
A short, slightly upward-sloping consolidation (the “flag”) after a steep sell-off (the “flagpole”). The downtrend usually continues.
How it forms
An impulsive sell-off is followed by an orderly counter-move in a narrow, slightly rising channel with declining volume – a breather, not a trend change.
How it is typically traded
On a break below the lower flag boundary.
The length of the flagpole, projected downward from the breakout point.
Above the high of the flag.
Where & when – and the limits
The mirror image of the bull flag, best in strong downtrends. If the flag runs too far up (more than roughly half the pole), it loses meaning.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
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