Chart cheat sheet
ContinuationBearish
Bear flag
A sharp fall pauses in a small upward channel. It can be temporary buying inside a broader decline.
Educational example of a bear flag. Real charts are messier — the shape is the idea, not a template.
What confirms it
A close below the flag's lower edge, aligned with the earlier fall.
Common trap
Shorting inside the channel. Price has not confirmed continuation until support breaks.
Read it in five checks
- 01Trend: Is the higher chart rising, falling or ranging?
- 02Location: Is the setup at real support, resistance or structure?
- 03Close: Did a full candle close beyond the trigger level?
- 04Invalidation: Where does the chart prove the idea wrong?
- 05Reward: Is there enough clear space before the next barrier?
A chart pattern describes price behaviour; it does not predict the next candle. Use it with a trend filter, a defined stop and a tested risk-reward rule. Educational examples only — not trading advice.