Bear Flag Pattern
A bearish continuation pattern forming after a sharp decline, with a rectangular consolidation that slopes slightly upward.
Quick Answer
A bearish continuation pattern forming after a sharp decline, with a rectangular consolidation that slopes slightly upward.
What Is the Bear Flag Pattern?
The Bear Flag is the bearish counterpart to the Bull Flag. It forms after a sharp downward move (the flagpole), followed by a consolidation that typically slopes slightly upward. This pattern indicates sellers are resting before continuing the downtrend, with breakdowns often matching the momentum of the initial decline.
How the Bear Flag Forms
- 1Sharp downward move forms the flagpole
- 2Price consolidates in a parallel channel
- 3Flag typically slopes up or sideways
- 4Volume decreases during flag formation
How to Confirm the Pattern
Price Target Calculation
Measure the flagpole height and project downward from the flag breakdown point.
Best Timeframes for Bear Flag
How to Trade the Bear Flag
- →Trade momentum continuations in downtrends
- →Set bearish price targets
- →Time short entries on breakdown
- →Ride strong downtrending moves
Common Mistakes to Avoid
Detect Bear Flag Automatically
VaultCharts automatically detects Bear Flag patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.