Community Forex Questions
What is bear flag?
A bear flag is a bearish chart pattern formed by two declines separated by a brief period of consolidation.
The flagpole is formed by an almost vertical panic price drop as bulls are caught off guard by sellers, followed by a bounce with parallel upper and lower trendlines that form the flag.
The initial sell-off ends with some profit-taking, forming a tight range with slightly higher lows and higher highs.
The flagpole is formed by an almost vertical panic price drop as bulls are caught off guard by sellers, followed by a bounce with parallel upper and lower trendlines that form the flag.
The initial sell-off ends with some profit-taking, forming a tight range with slightly higher lows and higher highs.
A bear flag is a technical analysis pattern that signals a potential continuation of a downtrend in a financial market. It forms during a period of consolidation after a sharp decline. The pattern resembles a flag on a pole, where the "flagpole" is the initial sharp drop, and the "flag" is the consolidation period that moves counter to the prevailing trend.
During the flag formation, prices typically move within a small, upward-sloping channel or a horizontal range. This consolidation is often seen as a pause before the market resumes its downward movement. Traders use the bear flag pattern to identify potential short-selling opportunities, anticipating that the price will break out from the consolidation phase and continue to fall.
During the flag formation, prices typically move within a small, upward-sloping channel or a horizontal range. This consolidation is often seen as a pause before the market resumes its downward movement. Traders use the bear flag pattern to identify potential short-selling opportunities, anticipating that the price will break out from the consolidation phase and continue to fall.
Dec 06, 2022 01:59