How Do You Analyze Signal of a Bear Flag Chart Pattern?

How to Analyze Signal of a Bear Flag Chart Setup

This bear flag setup is found in a downwards trend.

The bear flag chart pattern is a trend continuation pattern where the price retraces slightly with a narrow price action that has a slight upwards tilt.

The trading technical sell point is when the price penetrates the lower line of the inverted bear flag pattern.

The flag portion of the trading pattern has highs & lows which can be connected by small lines that are parallel, giving it what resembles a small channel.

What Happens in XAUUSD after a Bear Flag Chart Pattern - How to Analyze Bear Flag Chart Setup

The bear flag setup above was just a resting period for the market before more selling. Continuation signal was confirmed as the lower line of this bear flag pattern was broken to the downside.

Read Signal of a Bear Flag Chart Setup