•  The inverse to the Bull Flag, the Bear Flag is a bearish continuation pattern that appears in a downtrend after a significant bearish move with volume.

•  The Bear Pennant is very similar to the Bear Flag.  The difference is that the consolidation is in the form of a small symmetrical triangle.  The bearish entry is just below the lower trend line of the triangle.

•  The stock will cease its fall as shorts cover their position.  The stock should consolidate in a sideways to slightly bullish fashion with decreasing volume.

•  The short entry is the break of the low of the flag.  The target should be the initial move down added to the bearish breakdown point.  Look for increased volume on the breakdown from the flag.

•  The stock falls quickly on increasing volume and smart traders begin to take profits as the stock moves sideways to up on decreasing volume.

•  The bearish entry at the low of the flag provides an excellent entry as the stock continues its’ move down on increasing volume.

•  The projected target is the length of the initial move down to the flag added to the breakdown point out of the flag.  Increased volume on the move will confirm the quality of the continued bearish sentiment.

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