# The Bear Flag

> The mirror image of a bull flag — a down-pole, an up-sloping consolidation, and the breakdown to short.

- Canonical URL: https://www.fundedready.org/library/bear-flag/
- Markdown mirror: https://www.fundedready.org/ai/markdown/library/bear-flag.md
- Content type: Training library lesson
- Course: Bear Flag
- Lesson number: 2
- Last reviewed: 2026-04-25

## Quick Answer

The mirror image of a bull flag — a down-pole, an up-sloping consolidation, and the breakdown to short.

## What is a Bear Flag?

A bear flag is the mirror image of a bull flag. After a sharp downward move (the pole), price pauses and drifts slightly upward in a tight channel (the flag). This bounce is not a recovery — it's sellers catching their breath before the next leg down.

## Why Do They Form?

After a sharp sell-off, some traders take profits on their short positions, creating a mild bounce. But the selling pressure remains dominant. When supply overwhelms the profit-taking bounce, price breaks down out of the flag and continues lower.

## How to Trade Them

Watch the support level at the bottom of the flag. When price decisively breaks below it, that's your signal to sell (go short). The same timing discipline applies — too early and you're guessing, too late and you're chasing.

## Your Mission

Watch the chart. Identify the bear flag. Hit SELL at the right moment. The closer your entry is to the breakdown level, the higher your score. Good luck, trader.

## TradingView Setup Help

Want the right indicators on your chart without the guesswork? [IndicatorFit](https://www.indicatorfit.com/) helps you build a clean TradingView indicator stack around your market, timeframe, and trading style, so your chart supports the setup instead of burying it in noise. Use it as setup support, not as a signal service or a promise of trading results.

## Sources and Review Notes

- [FundedReady methodology](https://www.fundedready.org/methodology/): Review process, simulator scope, and educational disclaimers.

This lesson explains simulator concepts and should be treated as education, not trading advice.