Bear Flag Chart Pattern
Definition of 'Bear Flag Chart Pattern'
In the chart image below the vertical white line represents the flag pole and the two parallel white lines represent the bottom and top edges of the flag. (This is essentially an upside down flag.)
If the flag does not form a rectangle and instead forms a narrowing cone then this can be called a Bear Pennant.
Traders are looking for a break of the lower edge of the flag for a continuation of the trend and will expect the next down move to be the same length as the flagpole.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.