Learning Hub

Bear Flag

bearish

Definition

A sharp drop (pole) then a small upward-sloping consolidation (flag).

Psychology

After a sharp fall, price bounces weakly before likely continuing down.

Real-life analogy

💡 A flag on an upside-down pole: a sharp fall, a weak bounce, then more downside.

Expected direction

down

Entry / Stop / Target

Entry: On a breakdown below the flag. · Stop: Above the flag high. · Target: Pole height projected down from the breakdown.

Historical behaviour

Reliable continuation in strong downtrends.

Illustrative success rate

~60-68% on breakdown · Medium reliability

Common beginner mistakes

  • Buying the bounce
  • Misjudging the pole

Quick quiz — did you understand?

1. Is the Bear Flag generally considered bullish, bearish, or neutral?

2. After a confirmed Bear Flag, the expected direction is usually:

3. Which is a common beginner mistake with the Bear Flag?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.