What is a Bear Flag Pattern?

Every trader has many times come across the bear flag pattern, which resembles a pennant. The formation got its name due to the fact that after a consistent price decline, a slight upward correction occurs, resembling a flag. This gives a false price reversal signal. However, this is a common misconception in trading, as the price continues to move in the direction of the original trend after a pullback. As a rule, a flag emerges on high trade volumes. A strong price decline draws the flagpole. The flagpole is the basis for the target identification after the flag breakout downside. ... Read full author’s opinion and review in blog of #LiteFinance