Glossary

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.


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