Bear Flag
A pattern where a sharp drop (the pole) is followed by a small, slightly upward drift (the flag), often…
In plain English
A pattern where a sharp drop (the pole) is followed by a small, slightly upward drift (the flag), often before another leg down.
A bear flag starts with a steep plunge, the flagpole. Then price drifts up or sideways in a small, orderly channel, as if catching its breath. That drift is the flag.
Traders read it as a pause in a downtrend, not a reversal, and watch for a break below the flag. Its mirror image is the bull flag.
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