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Bearish Flag

Emerging markets (EEM) - Bear Flag targets $18Back in 2021, I posted about Emerging markets with a title "EEM. Emerging markets could drop within the last leg down" The plan plays out well so far and I found another educational pattern for you on it today. The Bear Flag appears in the chart as I spotted it on time. The price is still within the Flag and breakdown below the downside of the pattern would trigger the continuation of the downtrend after this consolidation. The target is located at the distance of the Pole subtracted from the downside of the Flag. $18 is the bottom of the large range and the aim for the Bear Flag. This is the beauty of the patterns as they match with other type of analysis.
AMEX:EEMEducation
by aibek
Navigating Market Turbulence: Unveiling the Bearish Flag Pattern In the world of technical analysis, patterns often provide valuable insights into potential market movements. One such pattern, the bearish flag, is a vital tool for traders seeking to identify and capitalize on bearish trends. In this comprehensive guide, we'll explore the bearish flag pattern, uncovering its characteristics, formation, and implications. With real-world examples, you'll gain the knowledge to spot this pattern and make informed trading decisions in bearish market conditions. Demystifying the Bearish Flag Pattern What is a Bearish Flag Pattern? 🚩 The bearish flag pattern is a continuation pattern that occurs during a downtrend. It resembles a flag on a flagpole, hence its name. This pattern suggests a brief consolidation or pause in the downtrend before the price resumes its downward trajectory. Key Characteristics of a Bearish Flag 1. Prior Downtrend: The bearish flag pattern forms after a notable downtrend, indicating bearish sentiment in the market. 2. Flagpole: The flagpole is the initial sharp decline in price that precedes the flag's formation. It represents the strong selling pressure. 3. Flag Formation: Following the flagpole, there is a period of consolidation where the price moves in a horizontal or slightly upward range. This forms the flag itself and indicates a temporary pause in the downtrend. 4. Volume: Ideally, the volume should decline during the flag formation, reflecting a decrease in trading activity. 5. Breakout: The bearish flag is confirmed when the price breaks below the lower boundary of the flag, resuming the downtrend. Bearish Flag in a Stock Bearish Flag in a Forex Pair The bearish flag pattern is a valuable tool for traders seeking to navigate bearish market conditions. By understanding its characteristics and monitoring its formation, traders can identify potential opportunities to profit from the resumption of a downtrend. However, like all technical patterns, it should be used in conjunction with other forms of analysis to make well-informed trading decisions. The bearish flag pattern is a powerful addition to any trader's toolkit for analyzing and interpreting market dynamics. 📉🚩 Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
5
Mastering the Bearish Flag Pattern in Forex and Gold Trading The bearish flag pattern is a powerful technical analysis tool used by traders to identify potential bearish trends in the foreign exchange (Forex) and gold markets. As a continuation pattern, it is typically formed after a strong downward move, indicating a short-term pause before the price continues its downward trend. 📚How Does the Bearish Flag Pattern Work? The bearish flag pattern is formed when the price experiences a sharp decline (the flagpole) which is then followed by a short period of consolidation (the flag). During the consolidation phase, the price usually trades within a tight range, with lower volume, indicating a temporary balance between buying and selling pressures. The pattern is confirmed when the price breaks below the support level of the flag. This indicates that the selling pressure has now become bullish, and traders can expect a continuation of the downward trend. 📉Trading the Bearish Flag Pattern Traders can take advantage of the bearish flag pattern by entering a short position after the flag pattern has been confirmed. This means that the trader will be selling the asset in question, expecting it to continue its downward trend. To increase the likelihood of success, traders can use other technical indicators, such as moving averages and oscillators, as well as fundamental analysis to identify potential price movements and market trends. Here is the example of a bearish flag pattern that we spotted on Gold. After a sharp bearish move, the market started to consolidate within a horizontal range - flag. Its support breakout was the indicator that the market returns back to a bearish trend. 📈Bullish Flag Pattern The bullish flag pattern is the exact opposite of the bearish flag pattern, indicating a temporary pause in an upward trend. It is formed when the price experiences a sharp upward move followed by a short period of consolidation before continuing its upward trend. Trading the bullish flag pattern is similar to trading the bearish flag pattern, with traders entering a long position after the confirmation of the pattern. Here is the example of a bullish flag. The signal to buy was a bullish breakout of its upper boundary. Behold how quickly the market started to grow then. In conclusion, mastering the bearish flag pattern is a valuable skill in Forex and gold trading, allowing traders to enter short positions with greater confidence and accuracy. By combining technical and fundamental analysis, traders can identify potential trading opportunities and reduce their risks. It is important to note that a similar strategy can be applied for trading the bullish flag pattern, which is equally useful in identifying potential profitable trades in an upward trend. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
4
📉 4 Common Bearish PatternsIn trading, a bearish pattern is a technical chart pattern that indicates a potential trend reversal from an uptrend to a downtrend. These patterns are characterized by a series of price movements that signal a bearish sentiment among traders. 📍Bear Flag 🔸 A small rectangular pattern that slopes against the preceding trend 🔸 Forms after a rapid price decline (flagpole) 🔸 The pattern is completed when the price breaks below the lower trend line of the flag 📍Descending Triangle 🔸 A bearish continuation pattern that forms with a horizontal support line and a descending trendline 🔸 Forms as the price reaches lower highs, while the lows remain at the same level 🔸 The pattern is completed when the price breaks below the horizontal support line 📍Rising Wedge 🔸 A bearish reversal pattern that forms with a series of higher highs and higher lows 🔸 The pattern forms as the price moves up in a narrowing range 🔸 The pattern is completed when the price breaks below the lower trendline 📍Triple Top 🔸 A bearish reversal pattern that forms with three peaks at the same price level 🔸 The pattern forms as the price reaches resistance at the same level multiple times 🔸 The pattern is completed when the price breaks below the support level, which connects the lows between the peaks 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
21
EDUCATION - Identifying & Trading Flag PatternsIn this post, we will be explaining what a flag patterns is and how to identify and trade them. What is a Flag? The flag pattern is the most common continuation patterns in technical analysis. It often occurs after a big impulsive move. The impulse move is followed by short bodied candles countertrend to the impulse move, which is called the flag. It is named because of the way it reminds the viewer of a flag on a flagpole. Often, the breakout of the flag is the same size as the impulse leading to the flag. We can use this to create our take profit levels. There are 2 types of ways we can trade flag patterns; Risky Entry & Safe Entry. See below for the pros and cons for both and how to enter them _______________________________________________________________________________ Risk Entry: The reason why it is called a risk entry is because we haven't got many confirmations apart from the bounce off the fibonacci level. Price may have the potential to go lower for a deeper correction before moving up. Whereas for the safe entry, the confirmation that it is a valid flag would be the break of the flag pattern. How to trade using Risk Entry: Wait for price to bounce off the fibonacci levels (0.5 or 0.618) and then enter with stops below/above the correction. One of the advantages of doing a risk entry is that we can have small stop loss and have a great risk:reward ratio. Also, we can gain an entry at the start of the move and HODL! Safe Entry: Safe entry requires more than one confluence and requires confirmation. We have the rejection of the fibonacci level as well as a breakout of the flag, confirming that it is a valid flag pattern. How to trade using Safe Entry: For a safe entry, enter upon the break of the flag pattern with stops above/below the flag depending on whether its a bull or a bear flag. First TP would be the recent structure level and second TP would be the length of the impulse which led up to the correction. The disadvantage to using a safe entry is that we require a bigger stop loss which makes the risk:reward ratio not as great as the risk entry. However, the probability of the trade succeeding is higher. _______________________________________________________________________________ EXAMPLES OF RISK ENTRY EXAMPLES OF SAFE ENTRY
Education
by Altsignals
6
EDUCATION - Identifying & Trading Flag Patterns In this post, we will be explaining what a flag patterns is and how to identify and trade them. What is a Flag? The flag pattern is the most common continuation patterns in technical analysis. It often occurs after a big impulsive move. The impulse move is followed by short bodied candles countertrend to the impulse move, which is called the flag. It is named because of the way it reminds the viewer of a flag on a flagpole. Often, the breakout of the flag is the same size as the impulse leading to the flag. We can use this to create our take profit levels. There are 2 types of ways we can trade flag patterns; Risky Entry & Safe Entry. See below for the pros and cons for both and how to enter them _______________________________________________________________________________ Risk Entry: The reason why it is called a risk entry is because we haven't got many confirmations apart from the bounce off the fibonacci level. Price may have the potential to go lower for a deeper correction before moving up. Whereas for the safe entry, the confirmation that it is a valid flag would be the break of the flag pattern. How to trade using Risk Entry: Wait for price to bounce off the fibonacci levels (0.5 or 0.618) and then enter with stops below/above the correction. One of the advantages of doing a risk entry is that we can have small stop loss and have a great risk:reward ratio. Also, we can gain an entry at the start of the move and HODL! Safe Entry: Safe entry requires more than one confluence and requires confirmation. We have the rejection of the fibonacci level as well as a breakout of the flag, confirming that it is a valid flag pattern. How to trade using Safe Entry: For a safe entry, enter upon the break of the flag pattern with stops above/below the flag depending on whether its a bull or a bear flag. First TP would be the recent structure level and second TP would be the length of the impulse which led up to the correction. The disadvantage to using a safe entry is that we require a bigger stop loss which makes the risk:reward ratio not as great as the risk entry. However, the probability of the trade succeeding is higher. _______________________________________________________________________________ EXAMPLES OF RISK ENTRY EXAMPLES OF SAFE ENTRY
Education
by Altsignals
48
FLAG PATTERNS & PSYCHOLOGY BEHIND BULL AND BEAR FLAG FORMATIONSHi everyone and Good morning. Welcoming you back (after 18-week break) Thanks for your like and supports. This is Part 3 of my Technical Analysis series of CHART PATTERNS BULL AND BEAR FLAGS Now, for those meeting the words BULLS and BEARS for the first time, these are terms used to describe the buying and selling action of traders BULLS generally refer to the price action of buyers as they drive Stock PRICES UP, while BEARS refer to the selling action of sellers as they drive stock PRICES DOWN. For starters, let’s define what a Flag pattern is: A flag pattern is a TREND CONTINUATION PATTERN . It is named a flag pattern because its formation resembles a flag on a flagpole. The pole is usually the result of an almost VERTICAL RISE IN PRICE, and the flag part results from a PERIOD OF CONSOLIDATION When the price breaks out of the consolidation range, it triggers the next move higher. Flag patterns can either be BULLISH or BEARISH. Follow me closely, as We will now look at BULL and BEAR Flags in turn: BULL FLAGS Bullish flag formations are found in stocks with STRONG UPTRENDS. They look something like (sketch 1 on chart) As can be seen on the sketch 1 chart above, the pattern starts with a STRONG, ALMOST VERTICAL price spike, that eventually start losing steam forming an orderly pullback where the highs and lows are parallel to each other forming the FLAG in the form of a tilted rectangle. The tilted rectangle (flag) usually breaks to the upside resulting in another powerful move higher, usually measuring the length of the prior flag pole (Let’s consider the sketch 2 chart) Now let’s look at BEAR FLAGS : The bear flag is an upside-down version of the bull flag. It has the same structure as the bull flag but inverted. looks like sketch 3 As can be seen above, the flagpole forms from an ALMOST VERTICAL price drop, which is followed by a period of consolidation, with parallel upper and lower trendlines forming the flag. A break of the support structure of the flag, results in another move lower, with the same length as the prior pole. Just as with any Chart pattern, there is usually psychology behind its formation. Let us look at the PSYCHOLOGY BEHIND BULL AND BEAR FLAG FORMATIONS: On bull flags, the bears (short sellers) get blindsided due to complacency as bulls (buyers) charge ahead with a strong breakout causing bears (short sellers) to either panic and cover their ‘shorts’; or add to their ‘short’ positions. Once the stock is in the consolidation stage, the bears (short sellers) regain some confidence and they add to their ‘short’ positions with the expectation of a price drop; only to get trapped again when the price break to the upside causing short sellers to cover their ‘Shorts’ thereby driving prices even higher Since some short-sellers from the initial flagpole run up may still be trapped, the second breakout forming through the flag can be even more extreme in terms of the angle and severity of price move. That is precisely the psychology behind BULL FLAGS; and that same psychology applies on BEAR FLAGS, just in reverse. Now let’s consider the sketch 4 on how we can make money from bull and bear flags: On a bull flag, you typically want to enter a Long trade on a breakout to the upside. Take profit target should be the same length as the prior flagpole. Stop loss should be placed just below the broken resistance line, which will now be acting as support. I will leave it here for this week, that’s all I had in store for you. Follow me And JOIN me again next week as we will be talking about another Chart Pattern that works. Until then, here is to Profitable trading!
COINBASE:BTCUSDEducation
by TaherJalili
6
📚 What To Look for When Charting Here is a chart of EURCAD. There were various opportunities available both short term and long term. Once you can identify chart patterns, you can easily anticipate where price will go next. A great chart pattern that I always use is flags - Bull Flags and Bear Flags. In the chart you can see that many times price impulsed and then created a flag and then carried on with the move. Flags can be found both in higher timeframes as well as lower time frames. Be sure to look out for them!
Education
by WicktatorFX
12
In depth look at continuation bull/bear flag structures/patterns Hello everyone: Welcome back to another quick educational video on price action structures/patterns. Today let's go deeper into the continuation correctional structure. Specifically, the continuation bull/bear flag structure. First it's important to understand that a bullish/bearish flag is a continuation correction. They are representing a correctional phrase of the price action, before resuming the previous impulse phrase. As price action traders, we must be able to identify what correction we are seeing. This will allow you to get ahead and make your forecasting so you are prepare to any potential entries Second, bullish/bearish flag correction will appear in any time frames, any markets, and in different sizes. Typically a flag correction will have at least 2 swing highs and 2 swing lows and relatively even and proportion in angle or length. They can be slightly slanted or very parallel to each other. Remember the market is not perfect, it wont always present us picture perfect, textbook structures. Thirds, So its important to understand multi-time frame analysis, top down approach. A LTF bullish/bearish flag may or may not have the potential to start taking off massively due to the higher time frame showing us a conflicting bias. So its important to add as much confluence to your trade as possible. As always, any questions, feedback or comments please let me know :) See you all in my next weekly outlook stream. Thank you
BINANCE:XLMUSDEducation
by jojofang0901
18
[EDUCATIONAL] BULL Flag on ETH/USD - Full ExplanationIn this technical analysis we are reviewing the price action on Ethereum. The confirmed bull flag is a very powerful signal and I will be explaining how you can trade it. Both flags and Pennants are quite similar to each other and have proven to be powerful chart patterns in technical analysis. They are considered 'continuation patterns'. First of all it is important to understand where the name is coming from. If you look at the picture to the left you should get a pretty good idea. The price goes up strongly (in case of a bullish pattern, downwards for bearish) and then enters a moment of soft consolidation with a slight bearish trend (or in case of a bear flag it should be bullish, you get the point). The price is expected to continue in the direction of the move it had seen before (in this case the strong upwards momentum) after it breaks out of the flag. Ethereum has JUST confirmed the breakout on the bull flag, which should indicate a bullish continuation according to this pattern. Follow me for consistent high quality updates, with clear explanations and charts. Please like this post to support me. - Trading Guru -------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
BITSTAMP:ETHUSDEducation
by Trading-Guru
11
Bearflag and Bearish pennantA Bear Flag is a price action within the context of a downtrend that produces an orderly price increase consisting of a narrow trend range comprised of higher swing/pivot highs and higher swing/pivot lows. The success of a Bear Flag can be greater after a significant downside move due to the possible increase of overhead resistance. 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. Target of bearflag is the lenght of flagpole and you need to measure this lenght for breakdown target from support line of Flag(wait till this support line will be broke and after you can entry) Bearish pennant: The initial sell-off into the pennant can be steep or gradual. The Pennant represents a pause to consolidate, retracing a small part of the initial sell-off within a tight channel. A break-down from this channel is the first hint that a bearish pennant could be in the making. Once the shares break down from the pennant, it is possible that another sell-off – the same size as the first Target of bearpennant is the same like in bearflag,measure lenght of flagpole and this lenght from pennant support line will be the target
BITSTAMP:BTCUSDEducation
by CryptoC77
1
Exclusive Update, Bitcoin And Solving The Bart Move Puzzle As promised i would explain my view on why i assumed today's bear flag was NOT a Bart move. There is more to is than just these 2 moves, the bigger picture also plays a part, but i won't get into those details because it would make things too complicated. 1: The spread between high and low 2: A drop and quick move above the previous high 3: Difference in buying volume 4: Bull flag and follow through, on the right a failed one 5: Similar move also similar volume 6: What is the difference here? 7: Left is a triangle shape, right is a bear flag shape 1: First of all, number 1 was the most obvious from the start. Don't mean it already said it would not be another Bart move, but it was an obvious difference, as i also mentioned in my Bitcoin' analysis. On the left it's 150 points and on the right it's 70 points. The one on the left is enough to create liquidations or stops getting hit on a leveraged exchange like Bitmex' which creates fuel to do what they want. 2: A second big clue is number 2, a quick drop and a big move up just as fast and went even above the high of the previous few candles. 3: The high buying volume on number 2, most probably even just bots who are programmed to buy within a certain price range. The high volume shows the order book was filled with sell orders, so perfect opportunity to get a big amount of long positions in. 4: During this drop and bounce up, we can see a small bull flag on the left with follow through reaching the target of that bull flag. First though would be, hmmmm this is a bullish sign. That is true as well, but look at the one on the right, what do you see? We see similar buying volume but no follow through in price? This i want you to answer yourself in the comment section. 5: Explained at point 4 6: Here is where we continued to drop today and bounced up again at the Bart move on the left. This one is not easy to judge, there is a difference in volume here but not significant. On the right it obviously just continued to drop while on the left there was support at that low. 7: The whole pattern on the left has the shape of a triangle while on the right it was simply a bear flag. The orange part was an extra bonus, does not have much to do with the Bart pattern. Now who ever these people are, if it's on entity or simply just several traders who use the similar bots, i don't know. But to make it easy, i always look at the market as if it's me against one big whale. Now the blue circles, you have to see those as if the bots are eating up all the sell orders on the way until a maximum level. Now if their bags or not filled up enough, they simply stop the price there with sell orders or simply just sell walls, unless the rest of the market pushes the price down. So they try to eat up all the sell orders as fast as they can before someone else does it and hit the break at a certain point. Just think of it in that way, makes it easier to comprehend/visualize. Please don't forget to give a like if you appreciate this :) Current Bitcoin analysis:
BITSTAMP:BTCUSDEducation
by botje11
75
ETHUSD - Descending Triangle + Bear FlagHi All, This is just a initial stage of the pattern, the pattern usually change to ascending/descending triangle and sometime to raising/ falling wedge or a channel. Just monitor on the declining of the volume until the breakout volume spike. (to identify the target price). 1. Descending Triangle - This pattern is usually a continuation pattern, but some cases, there is a breakout at the triangle resistant line. 2. Bear Flag. 3. Stoch RSI just returned from overbought once bear flag pattern is confirmed, it will affect the MACD and form a bearish divergent. (and confirm the descending triangle bearish pattern). This TA is for Educational purpose and not a financial advice. If you are happy with my charts and would like to follow more in the future, feel free to follow my profiles.
BITFINEX:ETHUSDEducation
by OPassiveIncome