Bearish FLAG pattern is formed after a steep fall in price giving a steeper pole, when this is followed by range-bound price for 3 to 7 days with lower volume during this horizontal price move forming the FLAG to complete the pattern. Price should not drift higher during the horizontal move & break-out should happen with higher volumes, giving momentum to the price movement. Flag patterns are continuation pattern and break-out in the same direction as the prior trend, downtrend in this case.
Bearish FLAG pattern – BHEL
