Bear Flag
A sharp downward pole followed by a tight, slightly upward-drifting channel — a continuation setup that resolves lower once the flag breaks.
A Bear Flag mirrors the Bull Flag. A steep pole (rapid price drop) is followed by a gentle upward or sideways drift in a narrow channel — the flag. Volume contracts during the flag as the market pauses.
The breakdown below the lower channel line is the entry trigger. Target = pole length projected downward from the breakdown point.
- Tight flags (small range, few days) are the highest-probability setups.
- Flags that start to look like rising wedges signal weakening bear momentum.
