Analyze Bear Flag Pattern

How to Read Bear Flag Chart Setup

This bear flag setup is found in a down ward trend. The bear flag chart pattern is a trend continuation pattern where the price retrace slightly with a narrow price action that has a slight upward tilt. Sell signal is generated when price penetrates the lower line of the inverted bear flag setup. The flag portion of this bear flag setup has price highs & price lows which can be connected by small lines which are parallel, giving the bear flag pattern the look of a small channel - inverted flag.

Interpret Bear Flag Chart Pattern? - How Do I Interpret Bear Flag Chart Setup

The bear flag setup above was just a resting period for the market trend prior to more selling and resuming of the downwards trend. The continuation signal from the bear flag chart pattern was confirmed when the lower line of this bear flag pattern was broken to the downside after which the price headed downward.

How Do You Interpret Bear Flag Chart Setup