What is a Bear Flag & a bull flag?

Bear flag: A bear flag is a sharp volume decline on a negative development. Bull flag and bear flag share the same traits: Traits of Flag Patterns include support and resistant levels, flag, flag pole, breakout points and price projections.

What is a Bear Flag & how does it work?

The bear flag is an upside down version of the bull flat. It has the same structure as the bull flag but inverted. The flagpole forms on an almost vertical panic price drop as bulls get blindsided from the sellers, then a bounce that has parallel upper and lower trendlines, which form the flag.

Can a bull and Bear Flag pattern make a false breakout?

The pattern can make a false breakout. In summation, the bull and bear flag patterns are great tools for traders when day trading or swing trading. You can identify the pattern in any market condition or time frame. Price patterns might reveal what traders think and feel about the market at certain price points.

How to use Bull & Bear Flag patterns on phemex?

On Phemex, you can combine the bull and bear flag patterns with other indicators to help plan out your trades. The best indicators to combine with flag patterns are popular indicators such as the Relative Strength Index ( RSI ), which can help show if the existing trend is oversold (bullish) or overbought (bearish).