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bearish Signal
Bearish Flag
A bearish flag is a continuation pattern that appears after a sharp price decline. It features a brief upward-sloping consolidation channel before the downtrend resumes.
How to Trade
Enter a short position upon a breakout below the lower support line of the flag. Place a stop loss above the flags high.
Market Psychology
Following a sharp drop, a temporary "dead cat bounce" occurs as short-sellers take profits. This upward drift is met with new selling pressure, leading to a further collapse.
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Double Bottom
Technical Diagram
This visual represents the ideal candle formation and breakout points for the Bearish Flag pattern.