Glossary - ChicksX

Bear Flag Pattern is a continuation pattern in trading indicating a potential further decline after a brief consolidation.

Bear Flag Pattern is a technical analysis pattern that signals a continuation of a downtrend in asset prices. It resembles an inverted flag on a pole. The "flag" represents a short consolidation period after a significant price drop. Traders interpret it as a pause before further decline. Identifying this pattern involves spotting parallel lines sloping upward. These lines form the flag portion. The preceding steep decline forms the "pole." Recognizing this pattern helps traders anticipate further price drops and adjust strategies accordingly. Effective use requires understanding market context and confirming with other indicators.