Bear flag

The term bear flag is used in technical analysis and describes the interruption of a downward trend before a given security continues to lose value.

The bear flag pattern is characterized by an upward parallelogram because it interrupts a downward trend before this trend continues. Usually, this pattern marks the middle of a price movement and provides an outlook on how far the price is able to decrease further. Bear flags usually last only for a few days. Prolonged flags are called trend channels.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.