Bear Flags
Bear Flag Chart Pattern
The bear flag pattern is the opposite to the bull flag in that the configuration is the same but it is found in a downward trending stock. With the bear flag the shape of the flag and flagpole is inverted as though upside down.
The bear flag is a continuation chart pattern in which the price slightly retraces the preceding decline in the downward trend.
The sell point is when price breaches either the lower trend line of the flag area for an aggressive trade or the lowest price reached in the flag area for a more conservative approach, ideally with increasing volume indicating that the market sentiment is to continue downwards.
For a true flag the pattern has highs and lows which can be connected by small parallel trend lines
