Glossary · Candlestick & Chart Patterns
Bear flag / Bull flag
A brief consolidation within a downtrend / uptrend.
Flags are short pauses in a strong trend. A bull flag appears after a sharp rise (the flagpole): price drifts modestly lower or sideways in a tight channel, then may continue upward if the pattern resolves higher. A bear flag is the opposite after a sharp drop.
Flags are continuation patterns — the idea is that the dominant move is resting, not reversing. Breaks against the prior trend invalidate the classic setup.
Example
A stock gaps up 12% in two days, then drifts down slightly for four sessions in a narrow band. A break above that band is a textbook bull-flag continuation watch.