Glossary › bear flag

Trading glossary · patterns

bear flag

A chart shape: a fast drop, then a small, weak bounce, then often another drop, like a flag hanging from a pole.

The fuller meaning

A bearish continuation pattern: a sharp decline (the flagpole) followed by a short, shallow upward drift, completed by a close below the flag's lower edge. Traders sometimes project the pole's length from the break as a rough target, but many flags fail, so a stop above the flag defines the risk.

bear flag.

Related words

apex · ascending triangle · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle · descending triangle