bearish flag is a technical analysis pattern that is formed when an asset's price experiences a sharp decline, followed by a period of consolidation or a slight upward movement. The consolidation period is characterized by a narrow trading range and lower volume, and it typically lasts for several days or weeks. The bearish flag is created when the asset's price creates a series of lower highs and lower lows, with the slope of the trendline connecting the lows being less steep than the initial drop. This pattern is considered bearish because it is expected to lead to further price declines. Traders may look for a bearish flag as a signal to short or sell an asset, and they may also set stop-loss orders or take profit levels based on the size of the flagpole and the depth of the consolidation period.
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