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.
Related Terms
Bull Flag
A sharp upward pole followed by a tight, slightly downward-drifting consolidation channel — a high-probability continuation setup in strong uptrends.
BeginnerContinuation Pattern
Any pattern that forms mid-trend and resolves in the same direction as the prior move — flags, pennants, and triangles are the most common.
BeginnerFalling Wedge
Two converging downward-sloping trendlines where the upper line falls faster — a bullish pattern indicating downside momentum is fading.
IntermediateFlag
A brief rectangular consolidation against the prior trend, bounded by parallel trendlines — a high-frequency continuation setup.
BeginnerMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerPennant
A pole followed by a small symmetrical triangle — a tight continuation coil that resolves in the direction of the prior thrust.
Beginner