Flag Bearer: The Pattern Traders Use to Win in Short Trades

Do you see the price drop hard, then recover a bit, and then drop again? That’s a bearish flag, my friend. It’s one of the most profitable patterns out there.

The Structure (Very Simple)

The Pole: A sharp, quick decline with high volume. This is where sellers take control.

The Flag: Then comes a small sideways or upward bounce. It looks like the price is recovering, but it’s just a pause. Volume drops here because fewer people are buying.

The Breakout: The price breaks downward through the flag’s support. Volume picks up again. That’s the signal: we’re heading lower.

How to Trade This (4 Steps)

1. Wait for the bearish pole – It needs to be a sharp decline, not just a little volume.

2. Identify the consolidation – The small bounce is your entry zone. When it breaks downward, that’s your cue to go short.

3. Set a stop-loss above the flag – If things go the other way, at least you limit your losses.

4. Calculate your target: The height of the pole = your potential profit. If the pole measures 50 points, expect to fall 50 points from the breakout.

Why It Works

This pattern is pure gold because it shows market psychology in real time. Sellers are in control, there’s a pause, but then they come back stronger. It works in crypto, stocks, forex — everything.

The key: The bigger the initial pole, the stronger the subsequent fall. Pure science.