A steep drop followed by a tight, slightly up-sloping bounce channel. Selling usually resumes when price breaks below the flag.
How to identify it
- Sharp impulsive decline forms the pole
- Bounce drifts higher in a narrow channel
- Bounce retraces well under half the pole
Entry
Sell the break of the flag lower trendline or the last higher low.
Stop loss
Above the flag high.
Target
Pole length measured from the breakdown.
Invalidation
Bounce reclaims the midpoint of the pole.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your bear flag trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.