Bear Flag
SHORTThe tell: Sharp pole down, weak drift up on fading volume — mirror of the bull flag.
- What it looks like
- A hard flush down on heavy volume, then a weak, low-volume drift upward that never recovers much of the drop.
- Why it works
- Longs trapped in the flush use the bounce to exit and shorts re-load; the feeble drift shows there's no real demand underneath.
- Entry
- Break below the flag's lower channel as volume returns.
- Stop
- Above the flag high.
- Target
- Measured move — pole height subtracted from the breakdown point.
- How it fails
- The 'flag' reclaims more than half the pole or bounces on rising volume — that's real buying, stand down.
Reading it in a textbook is not the same as spotting it live. Drill the bear flag on charts generated fresh every time, or try today’s five.