Bear Flag
A short upward-drifting consolidation after a sharp drop, usually resolving with a continuation lower.
A bear flag is the inverse of a bull flag: a steep decline (the pole) followed by a tight, slightly upward-sloping pullback (the flag) on lighter volume. The bounce is profit-taking and weak-handed buying before sellers resume.
A break below the flag's lower boundary is the trigger, with the pole's length projected down as the target. The cleanest bear flags are tight and don't retrace too much of the drop.
On StockSetups
Because StockSetups surfaces only long setups, a bear flag is context to avoid rather than a signal it trades — the board filters bearish continuations off.
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