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Bear Flag

The Bear Flag appears in a downtrend, allowing the market to rest before continuing lower.

PoleBEAR FLAGBear Flag: Strong decline → Consolidate → Continue decline

Pattern Details

Category

continuation

Success Rate

83%

Average Move

-13%

Duration

1-3 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Flagpole: Strong decline over several sessions
  • 2
    Flag portion: Minor bounce, rising
  • 3
    Breakout: Price continues downward

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below flag support
  • ✓
    Volume decreases during flag formation
  • ✓
    Target = Length of flagpole measured from breakdown point
  • ✓
    Stop loss placed above flag high
Trading Tips
  • Flag should slope slightly upward
  • Flagpole should have high volume
  • Breakdown should have increased volume

Statistics

Breakout Statistics
Bullish Breakout17%
Bearish Breakout83%
Performance Metrics
Average Rise+0%
Average Decline-13%
Pullback Rate7%