It seems there is no shortage of bear flags as of late. A bear flag can deceive folks and being aware that a security is forming one can help. Folks who are stuck sell on these brief rallies up and then the down trend continues.
Each bear flag is a bearish chart pattern that's formed by two declines separated by a brief consolidating retracement period. The flagpole forms on an almost vertical panic price drop as bulls get blindsided from the sellers, then a bounce, or a brief rally up, that has parallel upper and lower trendlines, which form the flag. The trendlines of a bear flag often slope up against the prevailing downtrend but can also be horizontal like a small rectangle.
A Pennant is usually more wedge shaped as a rule and shorter in duration than a flag.
Agilent Technologies has several bear flags so far on the trip down from a steep climb up. The trip down can be a lot longer in duration than the trip up to the top.
It is possible for a bear flag to break up, and a bull flag can break to the downside. The pole on a bear flag is Down on a bear flag and usually occurs after a sharp decline or a gap down. You can measure the pole and project it downward to get a ball park guesstimate of where price may go.
The initial sell-off comes to an end through some profit-taking and forms a tight range making slightly higher lows and higher highs. This can easily be mistaken for a possible bottom.
Traders are entering long positions looking for a reversal and this forces price to drift in an upwards direction. One should be prepared to take action should price break down through the lower lower trendline which is support until broken, then it is resistance. A break of this trendline signals that the bears are in control again and ready to force another sell-off.
The success of a bear flag can be greater after a significant downside move due to the possible increase of overhead resistance. This is a further blow to a security that, at this point, has a lot of resistance overhead.
Bear flags can be stronger when the swing low that begins the pattern is also an all-time low due to the possible lack of underlying support.
A Bear flag is opposite of a bull flag.
This is a great company and eventually the drop down will end. Short interest is very low.
Each bear flag is a bearish chart pattern that's formed by two declines separated by a brief consolidating retracement period. The flagpole forms on an almost vertical panic price drop as bulls get blindsided from the sellers, then a bounce, or a brief rally up, that has parallel upper and lower trendlines, which form the flag. The trendlines of a bear flag often slope up against the prevailing downtrend but can also be horizontal like a small rectangle.
A Pennant is usually more wedge shaped as a rule and shorter in duration than a flag.
Agilent Technologies has several bear flags so far on the trip down from a steep climb up. The trip down can be a lot longer in duration than the trip up to the top.
It is possible for a bear flag to break up, and a bull flag can break to the downside. The pole on a bear flag is Down on a bear flag and usually occurs after a sharp decline or a gap down. You can measure the pole and project it downward to get a ball park guesstimate of where price may go.
The initial sell-off comes to an end through some profit-taking and forms a tight range making slightly higher lows and higher highs. This can easily be mistaken for a possible bottom.
Traders are entering long positions looking for a reversal and this forces price to drift in an upwards direction. One should be prepared to take action should price break down through the lower lower trendline which is support until broken, then it is resistance. A break of this trendline signals that the bears are in control again and ready to force another sell-off.
The success of a bear flag can be greater after a significant downside move due to the possible increase of overhead resistance. This is a further blow to a security that, at this point, has a lot of resistance overhead.
Bear flags can be stronger when the swing low that begins the pattern is also an all-time low due to the possible lack of underlying support.
A Bear flag is opposite of a bull flag.
This is a great company and eventually the drop down will end. Short interest is very low.
A bear flag is considered a Continuation Pattern.