The Bear Flag
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.