The bear flag pattern is a bearish continuation pattern that signals the potential continuation of a downtrend1
. Here's how it works:
Flagpole: The pattern starts with a sharp decline in price, forming the flagpole1
.
Flag: After the decline, the price enters a consolidation phase, moving sideways in a flag-like shape1
.
Breakdown: If the price breaks below the lower boundary of the flag, it confirms the pattern