This pattern in stock trading is called a bear flag, right?
Here's why:
Prior Downtrend (Flagpole): You can see a significant downward move leading into the pattern, which forms the "flagpole."
Consolidation/Correction (Flag): After the sharp drop, the price enters a period of consolidation within a defined, upward-sloping channel (or sometimes a rectangle). This forms the "flag" portion. It's a temporary counter-trend move where the bears take a breather.
Breakdown (Continuation of Downtrend): The price then breaks out of the lower boundary of the flag pattern, continuing the prior downtrend with renewed momentum.
Bear flags are considered continuation patterns, meaning they suggest that the preceding trend (in this case, a downtrend) is likely to continue after the pattern completes.
Is there a chance a reversal will follow the completed flag?
Here's why:
Prior Downtrend (Flagpole): You can see a significant downward move leading into the pattern, which forms the "flagpole."
Consolidation/Correction (Flag): After the sharp drop, the price enters a period of consolidation within a defined, upward-sloping channel (or sometimes a rectangle). This forms the "flag" portion. It's a temporary counter-trend move where the bears take a breather.
Breakdown (Continuation of Downtrend): The price then breaks out of the lower boundary of the flag pattern, continuing the prior downtrend with renewed momentum.
Bear flags are considered continuation patterns, meaning they suggest that the preceding trend (in this case, a downtrend) is likely to continue after the pattern completes.
Is there a chance a reversal will follow the completed flag?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.