A 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
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