How to Analyze Bear Flag Chart Pattern

This bear flag chart pattern is found in a down ward trend.

The bear flag chart pattern is a trend continuation pattern where the price retraces slightly with a narrow price action that has a slight upward sloping tilt.

The technical sell point is when the price penetrates the lower line of the inverted bear flag chart pattern setup.

The flag portion of this chart pattern has highs and lows which can be connected by small lines that are parallel, giving it what looks like a small channel.

How to Analyze Bear Flag Pattern

The bear flag chart pattern above was just a resting period for the market prior to more selling. The continuation stock signal was completed as the lower line of this pattern was broken to the down-side.