Continuation Patterns · Bearish
Bear Flag
A sharp drop, then a small upward-sloping channel, then a break lower.
The pole is the drop. The flag drifts up against that drop. The continuation example is a close below the flag.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- A sharp decline creates the pole.
- Price then drifts up in a tight channel.
- The example continuation is a close below the channel.
Market context
The drift should be corrective and smaller than the pole.
Entry example
An example entry is the break of the flag low.
Stop-loss example
An example stop is above the flag.
Target example
A common teaching method projects the pole downward from the break.
Common mistakes
- Treating a full reversal back through the pole as a flag.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.