Topic: How to use the Bear Flag pattern and what to look for? (Read 277 times)
Bear market trend was used by the experienced traders to earn more money from it.Many traders know the fact,bear market is suitable one to buy the good coins at cheap prices.So use the opportunity in the trading to earn more money.The bear market flag pattern can be found using the previous chart history of that coin.After creating a strategy use the money to earn good profit after the rise in value.When you get loss,use that pattern to hold the coin to avoid of loss again in future.Because the pattern is repeated one in future trading.
I am trying to learn how to trade with chart patterns myself too...
What I found based on backtesting flag patterns is that they also fail a lot. However, I did manage to get better results by adding some more rules to my strategy like these candlestick patterns - https://www.morpher.com/blog/candlestick-patterns/ - for entry signals. It proved to work much better than I expected.
Also consider other indicators or patterns for extra confirmation to avoid false signals. Understanding all the patterns is definitely not easy, I am still trying to understand how harmonic patterns - https://www.litefinance.org/blog/for-beginners/harmonic-patterns/ - work but it's a bit complicated. I'd say candlestick ones are much more suitable to start with.
What I found based on backtesting flag patterns is that they also fail a lot. However, I did manage to get better results by adding some more rules to my strategy like these candlestick patterns - https://www.morpher.com/blog/candlestick-patterns/ - for entry signals. It proved to work much better than I expected.
Also consider other indicators or patterns for extra confirmation to avoid false signals. Understanding all the patterns is definitely not easy, I am still trying to understand how harmonic patterns - https://www.litefinance.org/blog/for-beginners/harmonic-patterns/ - work but it's a bit complicated. I'd say candlestick ones are much more suitable to start with.
These stereotypical strategies won't work anymore cause the traders are evolving with the help of technology so the opportunities are shrinking.
Evolving with the help of technology, I don't follow..elaborate!And just so you know, today we have more people winning when it comes to the trading game as compared to a few years back were everyone relied on moving averages, trend lines and the alike...
The most easiest way is we can expect a green candle after a big red candle that is still preferred by many day traders and believing they can make money with this simple strategy. Well, it's true but not 100% accurate which means the remaining 20% plays a huge role so we need to be careful and build complex strategies to minimise the risks.
Trading the Green candle after a red candle and you say it's the preferred strategy by day traders in this day and age 
No ways mate, clearly this is gambling!!! How many times are you going to get false signals before catching the real move based on this strategy? I guess several false signals and I would advice anyone doing this to stop immediately !!
Btw trading shouldn't be hard or complex, if you trade it in a mechanical way and a trade meets all requirements before placing that pending order then the art of trading is mastered!
Then those people are forced to sell and then the bots may finally allow for the market to take its natural course, so newbies need to be incredibly careful when trading patterns like this as we cannot hope they are as effective as they were decades ago.
Flags are not to be traded alone for better result. I see flagpole as a signal to enter the market but that should not mean to jump in without checking out other indicators. So it is wiser to recheck on other indicators but as for market moving in a probable wrong way, it is happens sometimes and that is to take out stop losses first before taking the right direction. Bots are also configured to function that way but it is not as accurate as manual.
A Bear Flag pattern is a chart pattern used in technical analysis to identify potential bearish trends in the market. I can always identify the pattern in a chart by looking for the sharp and steep downtrend (the flagpole) followed by a period of consolidation usually characterized by a parallel channel or flag shape. One of my favorite patterns I used in trading the crypto-market hardly results in losses if one uses it well.
I think it's safe to state that the trading game has evolved over the years and today we don't trade patterns or trend lines alone...you need to bundle this with extra confluence! Of course we have a few people that have mastered on how best to use these but the best winning chance is to have to use extra tools.
And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
This is a must now, I am sure that the most advanced bots out there which are trading the markets have all of those patterns on their code, but instead of going with them they decide to go against it to trap a lot of people that are still using similar trading methods.And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
Then those people are forced to sell and then the bots may finally allow for the market to take its natural course, so newbies need to be incredibly careful when trading patterns like this as we cannot hope they are as effective as they were decades ago.
I think it's safe to state that the trading game has evolved over the years and today we don't trade patterns or trend lines alone...you need to bundle this with extra confluence! Of course we have a few people that have mastered on how best to use these but the best winning chance is to have to use extra tools.
And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
This is a must now, I am sure that the most advanced bots out there which are trading the markets have all of those patterns on their code, but instead of going with them they decide to go against it to trap a lot of people that are still using similar trading methods.And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
Then those people are forced to sell and then the bots may finally allow for the market to take its natural course, so newbies need to be incredibly careful when trading patterns like this as we cannot hope they are as effective as they were decades ago.
Quote from: palle11
Bear flags is just a confirmation of bear trend and nothing much to it. A newbie may find it a little bit confused if not explained in simple terms. Watch the trend if you can use longer time, confirm lower minutes and go in if it suits you then within minutes you are already in profit that shows you are right with the trend. It is not a rocket science that if you enter a wrong trend then you will come out in loss.
I agree with you, many newbies will not get it right in a way they will be able to flow with the bear flag because some of them are new to the bear flag which they will be seeing bear flag in the market but they will not know it is time to buy and hold for a better future. When the price is low to your satisfaction in the market is the best time to buy coins and hold which is the best strategy many potential traders are using to monitor the market price every night and day to ensure they didn't miss their weekly, monthly and yearly profits. If you don't believe in the bear flag, I think the forum is another place you can use to monitor the market price to trade because every single move of the price of the crypto in the market the information will be spread in the forum.
A quick tip using this bear flag pattern is before you enter the trade, you must also consider the other timeframe because sometimes, it is bullish or bearish (it's not aligned on your current timeframe)
By doing this, you can decide a better entry, stop loss and take profit price.
By doing this, you can decide a better entry, stop loss and take profit price.
that is true, sometimes it depends on the time frame that you are looking at. because the bear or bull season has no defined timeline, it depends on where you referenced your time frame to another one.
and do remember, every project has their own timelines and so what do you call the bear and bull season. it is relative to the market they have.
as much as possible, check the whole market performance of the project, so you know what kind of season you are entering with respect to their overall market.
I think it's safe to state that the trading game has evolved over the years and today we don't trade patterns or trend lines alone...you need to bundle this with extra confluence! Of course we have a few people that have mastered on how best to use these but the best winning chance is to have to use extra tools.
And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
And looking at the bearish flag given, if I applied some ICT concepts or smart money concepts to this, we can see that price came up for that displacement or price inefficiency called "fair value gap" which signaled we had an unmitigated area and price was expected to get here and reverse which it did for a 1:3 risk to reward
A quick tip using this bear flag pattern is before you enter the trade, you must also consider the other timeframe because sometimes, it is bullish or bearish (it's not aligned on your current timeframe)
By doing this, you can decide a better entry, stop loss and take profit price.
By doing this, you can decide a better entry, stop loss and take profit price.
that is true, sometimes it depends on the time frame that you are looking at. because the bear or bull season has no defined timeline, it depends on where you referenced your time frame to another one.
and do remember, every project has their own timelines and so what do you call the bear and bull season. it is relative to the market they have.
as much as possible, check the whole market performance of the project, so you know what kind of season you are entering with respect to their overall market.
Bear flags is just a confirmation of bear trend and nothing much to it. A newbie may find it a little bit confused if not explained in simple terms. Watch the trend if you can use longer time, confirm lower minutes and go in if it suits you then within minutes you are already in profit that shows you are right with the trend. It is not a rocket science that if you enter a wrong trend then you will come out in loss.
A quick tip using this bear flag pattern is before you enter the trade, you must also consider the other timeframe because sometimes, it is bullish or bearish (it's not aligned on your current timeframe)
By doing this, you can decide a better entry, stop loss and take profit price.
By doing this, you can decide a better entry, stop loss and take profit price.
Yeah but in my opinion, some patterns need other indicators that support them sometimes it fails to use only pattern, especially in a lower timeframe you also don't want an ending like this image below.
Many times, the market moves oppositely to what it should move based on patterns which are used by most of market participants. If the market moves exactly like what most of us think, most of us will be rich. Many years, in all markets, most of people lose money and only very intelligent investors, traders get richer.Don't trust patterns and indicators which are set up by Market Makers to help them richer and make us poorer. Focus on fundamentals and have a wide overview, long term plan are better.
Let's see if we will make a profit this time. You said to focus on the fundamentals. Really? But I think many traders are focusing on technical too much and I still believe not many are losing because they are also wise and they don't just rely on others' pattern or signals. Another thing about relying on our own, is that we can avoid blaming other's in case we lose.
Personally I like trading the breakout of a Flag pole however I prefer price retouching or pullback to the outer line of the flag pole and watch out for Price Action for possible price continuation something like exhaustion on a bullish or bearish candle that touched the line before pulling the trigger for a possible long or Short order with reference to the 1 hour or 2 hour timeframe definitely anot daily timeframe which I believe trading it breakout will lead to a massive drawdown if the price undergoes correction, however multi timeframe analysis is also very helpful to determine the trend of the market.
To this end I think scalpers may not have too much to do here with exhaustion, you are definitely waiting for correction and multi timeframe is useful to determine this position but I don't like to go for scalping because it is rather slow not to be caught up by retracement.. Although sometimes depending on the timeframe that this exhaustion is severe, it may change market direction especially with higher timeframe like daily above.
volatility which is something that not all would able to pull on because i could really say that scalping is really indeed hardest thing to be done when you do make out trades. You would really be finding these
technical indicators to be that your main friend when it comes to this. The difference on here is that you wouldn't really be sticking on higher time frame on which you would be mainly focusing on smaller ones.
I have tested out on doing scalping and it turns out that it isnt really something that it is really for me. It is really that hard once you do step your foot into the market.
Lots of indicators which you might really be needing but since we do know that trading isnt an assured thing no matter how well you do make TA's then its up to you on how you would gonna handle yourself.
Personally I like trading the breakout of a Flag pole however I prefer price retouching or pullback to the outer line of the flag pole and watch out for Price Action for possible price continuation something like exhaustion on a bullish or bearish candle that touched the line before pulling the trigger for a possible long or Short order with reference to the 1 hour or 2 hour timeframe definitely anot daily timeframe which I believe trading it breakout will lead to a massive drawdown if the price undergoes correction, however multi timeframe analysis is also very helpful to determine the trend of the market.
To this end I think scalpers may not have too much to do here with exhaustion, you are definitely waiting for correction and multi timeframe is useful to determine this position but I don't like to go for scalping because it is rather slow not to be caught up by retracement.. Although sometimes depending on the timeframe that this exhaustion is severe, it may change market direction especially with higher timeframe like daily above.
About the bear flag pattern, the diminishing volume during the formation is a must?
No, it isn't. However, in order to maximize your chances of winning the trade, you must use the volume indicator as your confluence. Some individuals use numerous indicators such as EMA and RSI in addition with a bear flag pattern. The more confluences the higher the probability. If you see a bear flag, you can utilize the EMA as dynamic resistance and the RSI for divergence. If you find these all in the chart, it raises your chances of winning the trade.Hmm, everyone has his own preference, Moving Average seems to be more attractive for those only who are jumping in the market for the long run as whales, and patient holders as well, wining a trade is not at all granted a bit with any sort of pattern because as for particularly the condition in the market, we are facing its completely based on the developments related the market. Keep close eyes on the developments to win the trade with your analysis.
About the bear flag pattern, the diminishing volume during the formation is a must?
No, it isn't. However, in order to maximize your chances of winning the trade, you must use the volume indicator as your confluence. Some individuals use numerous indicators such as EMA and RSI in addition with a bear flag pattern. The more confluences the higher the probability. If you see a bear flag, you can utilize the EMA as dynamic resistance and the RSI for divergence. If you find these all in the chart, it raises your chances of winning the trade. 
Good post but, we aint getting the timeframe we should currently be looking for this BEAR FLAG pattern. as much as i know this pattern dont usually comes up in the lower TF on like the higher TF. like the 1hr, 2hr, 3hr, 4hr down to the daily. And one thing i noticed this current year people talk more of SMC, ICT than patterns, as at 2018 i started with patterns.
who noticed this too...
who noticed this too...
It can happened on any timeframe including long time frame. Probably you are just looking on specific coin that doesn’t behave a steady movement in long term but you can see it if you browse on other tokens/coin. It’s normally being notice on short timeframe since there’s a lot of price action on short timeframe compared to long timeframe.
Patterns is still being use to get an overview on what’s gonna happened next. Indicators is just popular nowadays since it can provide a data that easy to analyze for signals compared on finding a pattern on candles and wait for the next candle to establish to confiremd the next movement of the price.
Good post but, we aint getting the timeframe we should currently be looking for this BEAR FLAG pattern. as much as i know this pattern dont usually comes up in the lower TF on like the higher TF. like the 1hr, 2hr, 3hr, 4hr down to the daily. And one thing i noticed this current year people talk more of SMC, ICT than patterns, as at 2018 i started with patterns.
who noticed this too...
who noticed this too...
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