Bear flag

A sharp drop followed by a small upward-sloping pause, usually a continuation pattern.

Definition

The drop is the flagpole and the pause is the flag. The small rebound can attract buyers hoping for a reversal. When price breaks below the flag, the pattern suggests the decline may continue.

Watch out for

If volume stays high during the flag it may be a real reversal rather than a pause. A break is not guaranteed.

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