A bull flag is comparable to a bear flag, with the exception that the trend is upwards. An intense rally followed by a flag-shaped trend halt helps traders identify bullish flag formations. On the contrary, a bear flag pattern is created by a bearish or downward trend (also known as the...
There are typically two types of flag and pennant patterns, mainly: Bullish and Bearish.The bull flag pattern consists of an upright pole coupled with a downward channel formed at the tip of the pole.Bull Flag pattern The Bear flag pattern on the other hand consists of an inverted pole ...
Unlike a bullish flag, in a bearish flag pattern, the volume does not always decline during the consolidation. The reason for this is that bearish, downward trending price moves are usually driven by investor fear and anxiety over falling prices. The further prices fall, the greater the urgency...
Bullish and bearish patterns have similar structures but differ in trend direction and subtle differences in volume pattern. The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level...
A bearish pennant is the same pattern as a bullish pennant, but inverse. In the example below you can see price was making a solid move lower. It then began a consolidation phase and formed the ‘pennant’, followed by the breakout and continuation lower. ...
Fremont hoists the grizzly-bear flag of the California Republic as California settlers declare themselves independent of Mexico during the Bear Flag Revolt
The preceding trend is crucial for pattern formation. A“flag” is composed of an explosive strong price move forming a nearly vertical line. This is known as the ”flagpole”. After the flagpole forms, bearish (bullish) traders, eager to capitalize on instant profits, begin selling (buying)...
Traders wait for the price to break below the support of the consolidation after this pattern is formed to enter in the short position. Formation Here is the formation of bullish and bearish chart patterns: Trading Strategy Traders can enter into a trade when the price breaks above or below ...