Bearish Flag
A Bearish Flag is a technical analysis pattern that indicates a potential continuation of a downtrend in financial markets. It typically forms after a sharp price decline, followed by a period of consolidation where the price moves sideways or slightly upward, resembling a flag on a pole. This pattern suggests that sellers may regain control, leading to another downward movement.
Traders often look for a breakout below the lower boundary of the flag to confirm the pattern. The Bearish Flag is commonly used in conjunction with other indicators to enhance trading decisions and manage risk effectively.