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.