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Bearflagpattern

USD/CAD could decrease to C$1.35The US dollar has weakened recently against other major currencies including the euro, pound and yen. While it may not have grabbed the headlines, there’s another currency we can add to that list: the Canadian dollar. The Canadian dollar – which was trading at around C$1.45 per US dollar at the end of January – may continue to strengthen against its southerly neighbour in the near term, potentially reaching C$1.35 per US dollar. Let’s examine why. The area between C$1.38 and C$1.39 has previously served as a resistance zone for USD/CAD, marking significant tops in 2022, 2023 and 2024. Each time, this area ended the dollar’s gains and led to a renewed period of Canadian dollar strength. The pattern changed in October 2024, when – after multiple failed attempts to break through resistance – USD/CAD finally pushed to a new high of C$1.45. Now, as USD/CAD declines from that peak, the old resistance area of C$1.38 to C$1.39 is providing support. If USD/CAD falls below support at C$1.38, it could decline towards C$1.347, partly because there are no meaningful levels of support to slow such a move. A falling bear flag pattern also seems to be forming, suggesting that a breakdown may be imminent, potentially supporting a drop to around C$1.35. Meanwhile, the completion of the diamond reversal top that formed from December 2024 to March 2025 could imply a return to the pattern’s origin near C$1.35. The USD/CAD chart pattern also shows a high degree of symmetry between the left and right sides. In other words, the decline on the right side is occurring at a similar pace to the earlier rise on the left. Completing this symmetrical pattern might suggest a return to the starting point around C$1.35. Of course, if support at C$1.38 holds and the Canadian dollar does not strengthen further, a swift rise for the US dollar back towards C$1.41 cannot be ruled out. Written by Michael J. Kramer, founder of Mott Capital Management  Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
by cmcmarkets
Comprehensive Guide to Bull and Bear Flag PatternsBull and bear flag patterns are some of the most reliable and widely used chart patterns in technical analysis. These patterns are particularly effective for traders who prefer trading with the trend, offering clear entry and exit points. They appear frequently in trending markets and represent short consolidations before the trend resumes. In this guide, we’ll cover the characteristics of bull and bear flags, trading strategies, and how to enhance your flag trading using multi-timeframe analysis. What Are Bull and Bear Flag Patterns? Bull and bear flags are continuation patterns, meaning they signal the potential for a price move to continue in the direction of the prior trend after a brief consolidation or retracement. Bull Flag: This pattern occurs during an uptrend. After a sharp rise in price (the flagpole), the price begins to consolidate within a downward-sloping channel (the flag). A breakout to the upside typically follows, continuing the trend. Bear Flag: In a downtrend, after a strong decline (the flagpole), the price consolidates in an upward-sloping channel (the flag). When the price breaks downward, it continues the downtrend. These patterns are valuable for traders as they provide clear entry signals when the price breaks out of the flag's consolidation range. Anatomy of a Flag Pattern The flag pattern consists of two main components: The Flagpole: This is the sharp price movement that occurs in the direction of the trend. It signifies strong momentum and establishes the direction in which the trend is moving. The Flag: The flag is a period of consolidation or retracement that follows the flagpole. The price moves within parallel or slightly converging trendlines and typically retraces about 30% to 50% of the flagpole. The flag represents a pause in the market before the trend resumes. Key Characteristics: Bullish Flag: Occurs in an uptrend, and the consolidation takes place in a downward-sloping channel. Bearish Flag: Occurs in a downtrend, and the consolidation takes place in an upward-sloping channel. Volume (if you trade Crypto or stocks) tends to decrease during the consolidation phase and increases significantly at the breakout point, confirming the continuation of the trend. Trading Strategies for Bull and Bear Flags While bull and bear flags are relatively simple to identify, using different strategies can help enhance the effectiveness of trades. Here’s a breakdown of the most effective approaches to trading these patterns: 1. Breakout Strategy The breakout strategy is a straightforward approach that traders use to enter a position when the price breaks out of the flag's consolidation. This marks the continuation of the trend and offers a high-probability setup. Entry: Enter the trade when the price breaks above the upper trendline of a bull flag or below the lower trendline of a bear flag. Stop-Loss: Place the stop just outside the flag’s opposite boundary (below the flag for bull flags or above for bear flags). Take-Profit: Measure the length of the flagpole and project it from the breakout point. This will give you a target for where the price could potentially move. 2. Multi-Timeframe Strategy The multi-timeframe strategy involves using multiple timeframes to analyze the flag pattern. This strategy can provide a more robust confirmation for entering the trade, as it gives you a broader perspective on the overall trend. Higher Timeframe Analysis: Begin by analyzing a higher timeframe (e.g., the daily chart). Look for a strong trend, either bullish or bearish, and identify if a flag pattern is forming within this trend. Lower Timeframe Confirmation: Once the pattern is identified on the higher timeframe, zoom in on a lower timeframe (e.g., the 1-hour or 4-hour chart) for precise entry points. Look for the price to break out of the flag pattern on the lower timeframe, confirming the trend continuation. Why Use This Strategy? Multi-timeframe analysis reduces the risk of false breakouts by confirming the broader trend on a higher timeframe. It allows you to refine your entries by using a lower timeframe for greater precision. Note: A critical benefit of this strategy is its ability to significantly enhance the risk-to-reward (R:R) ratio, with the example presented achieving an impressive 1:5 ratio. This means that for every unit of risk taken, the potential reward is five times greater—a highly efficient use of capital and risk management. 3. Pullback Entry Strategy The pullback entry strategy offers a more conservative approach to trading flag patterns. Instead of entering at the initial breakout, this strategy waits for a pullback toward the breakout level to confirm the trend’s continuation. Entry: Enter the trade after the breakout has occurred but wait for the price to pull back to the flag’s trendline. This pullback gives you a better risk-to-reward ratio. Stop-Loss: Place the stop just below the flag’s trendline for a bull flag or above it for a bear flag. Take-Profit: As with the breakout strategy, project the flagpole's length from the breakout point for your target. When Not to Trade Flag Patterns While flag patterns are reliable, they are not always guaranteed to work. There are specific conditions when you should avoid trading them: Choppy or Sideways Markets: Flags perform best in trending markets. If the market is choppy or moving sideways, flag patterns are less likely to lead to a strong breakout. Weak Flags: If the flag's consolidation is too broad or the market loses momentum during the consolidation, the breakout may be weak or fail altogether. Conclusion Bull and bear flag patterns are essential tools in any trader's toolkit, offering high-probability setups in trending markets. By understanding how to spot them, applying different trading strategies, and incorporating multi-timeframe analysis, traders can enhance their chances of success. Final Tip: Always combine flag patterns with good risk management techniques, such as proper stop-loss placement and positive risk:reward.
Education
by Mihai_Iacob
8
USDT Dominance Bearish Pattern: What’s Next for BTC and AltcoinsHey everyone! If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates! USDT dominance is a key indicator of market sentiment and liquidity flow between stablecoins like USDT and more volatile crypto assets like Bitcoin and altcoins. How USDT Dominance Impacts BTC and Altcoins: 📈 USDT Dominance Rising: This usually signals fear or uncertainty in the market, acting as a bearish sign for BTC and altcoins. 📉 USDT Dominance Falling: Indicates growing confidence, often leading to a rally in BTC and altcoins. Current Market Analysis: As shown in the chart, USDT dominance is forming a bearish flag on the daily time frame, which has already broken downward. It's now in the retest phase. Once this retest is confirmed, we can expect a significant drop in USDT dominance, likely triggering a strong pump in BTC and altcoins. In my opinion, this could be the last good opportunity to accumulate BTC and promising altcoins before the next market rally. What are your thoughts on this bearish pattern in USDT Dominance? Share your views in the comments below!
CRYPTOCAP:USDT.DShort
by CoreCrypto1
Missed the XAUUSD Move? Here’s What You Overlooked!1. Daily Trendline Description: The yellow trendline running across the chart represents the overall upward trend on the daily timeframe. It shows that despite the recent fluctuations, the long-term trend has been bullish. Significance: This trendline serves as a dynamic support level. Traders often look for price action around this trendline to gauge the strength of the ongoing trend. A break below this trendline could signal a potential reversal or a stronger bearish movement. 2. Ascending Channel Larger Ascending Channel: Description: This channel is characterized by two parallel lines (yellow) sloping upwards. The price has been moving within this channel for a considerable period. Significance: The upper boundary acts as resistance, while the lower boundary serves as support. The price breaking below the lower boundary can indicate the end of the bullish trend and the beginning of a bearish trend. Smaller Ascending Channel: Description: A smaller channel within the larger context, indicating a shorter-term upward movement. Significance: The break below this smaller channel, as shown on the chart, signifies a potential reversal or correction within the larger trend. 3. Support/Resistance Description: Horizontal lines marked as support and resistance represent key price levels where the price has historically faced buying or selling pressure. Significance: These levels are crucial for identifying potential entry and exit points. The support level acts as a floor where buying interest is strong enough to prevent the price from falling further. Conversely, the resistance level acts as a ceiling where selling interest prevents the price from rising further. 4. Higher High (HH) and Lower High (LH) HH (Higher High): Description: A peak higher than the previous peak, indicating the continuation of an uptrend. Significance: The formation of a higher high typically signals bullish momentum. However, in this case, the subsequent failure to maintain this level and the formation of a lower high (LH) suggests weakening bullish strength. LH (Lower High): Description: A peak lower than the previous peak, indicating potential trend reversal. Significance: The lower high after a higher high is a bearish signal, suggesting that buyers are losing control and sellers are gaining strength. 5. 15M/5M Bear Flag Entry Description: A bear flag pattern on the 15-minute and 5-minute timeframes is highlighted. This pattern consists of a sharp decline followed by a short consolidation in the form of an upward-sloping channel (flag). Significance: The bear flag is a continuation pattern, indicating that after a brief consolidation, the price is likely to continue its downward movement. The breakout from this flag pattern provides a potential entry point for short positions. 6. Target Profit Levels (TP 1 and Daily LQZ/TP 2) TP 1 (2,347.560): Description: The first target profit level is set at 2,347.560. Significance: This level is likely determined based on historical support levels or a measured move from the recent price action. Traders might look to take partial profits or exit their positions at this level. Daily LQZ/TP 2 (2,265.195): Description: The second target profit level is set at 2,265.195, which aligns with the daily liquidity zone. Significance: This is a more ambitious target, potentially indicating a stronger bearish move. The liquidity zone suggests an area with significant trading volume, which could act as a magnet for the price. Conclusion The chart presents a comprehensive analysis of the XAUUSD (Gold Spot) with multiple technical indicators suggesting a potential bearish outlook. The breakdown from the ascending channels, the formation of a lower high, and the bear flag pattern all point towards a continuation of the downward trend. The identified support and resistance levels, along with the target profit zones, provide clear benchmarks for managing trades.
OANDA:XAUUSD
by Adlercon333
🔥Ethereum's Tightrope: Will the Bear Flag Break? 📉 Levels 👀 🐻 Bear Flag Formation: The chart shows a bear flag pattern, outlined by yellow lines, suggesting a potential continuation of the downward trend after the consolidation. Watch for a price rejection at the upper trendline of the bear flag before a possible move down. 📐 Fibonacci Retracement Levels: Critical Fibonacci zones are plotted: The 38.2% level at about $3,307 could be the first resistance test. The golden ratio at 61.8% retracement, $2,823, is likely to offer considerable resistance. The 100% retracement at $2,039, marking a full return to the start of the price move, might serve as a strong support in a sustained downtrend. 🔵 Resistance Levels: The 'Shibunacci' blue lines indicate potential resistance points, with the highest at $4,451 signaling a significant barrier. 🔴 Support Levels: Marked levels hint at possible support zones, with the bottom level at $1,521 suggesting a pivotal area for bears. 📈 Price Action: Ethereum’s movement within the bear flag and around these key levels will be critical to monitor. 🔄 Indicator Analysis: 'Shibunacci' uses pivots to visualize support and resistance, and price crossing these trendlines could indicate breakouts or breakdowns. 🔮 Potential Outcomes: A break above the bear flag and past $4,451 might change the trend narrative, while a rejection and a drop through supports would confirm the bearish sentiment. 🕵️‍♂️ In essence, the 'Shibunacci' provides a mathematical approach to market pivot points. The bear flag points to a possible downtrend continuation, but price action near Fibonacci levels and resistance/support will offer clearer signals. Traders should also consider volume and other indicators for confirmation. 🛑 For a short, a stop loss could be considered just above the bear flag pattern or the nearest 'Shibunacci' resistance level to minimize potential loss if the trend reverses. 🚀 If the price climbs above $3,600, scalping opportunities may arise, taking advantage of smaller upward price movements while maintaining tight stop losses to protect against sudden declines.
INDEX:ETHUSDShort
by Shibunacci
CVX drops and then starts to recover LONGCVX today dropped suddenly for unclear reasons. The possibility of a Israeli - Hamas War cease-fire may have led to expectations that oil prices would fall as the shipping quagmire in the Red Sea might stabilize. Later in the day OPEC+ announced a raised target of $ 1.00 per barrel higher which on balance seems to be an offset maneuver. CVS in the drop lost 2% printed a bear flag in about 90 minutes. i will use this opportunity to buy some all options for September after the height of the summer driving seasons to add to my positions in the futures ETF USO and OXY.
NYSE:CVXLong
by AwesomeAvani
BIG PLAN about BTCAlthough it is thought that we have left the bear market and entered the bull market, BTC does not yet seem to have achieved its normal correction level at the required percentage. When we examine the LP and OTH focused fib retracement ranges based on the Rising Wedge phenomenon related to the Bear Flag formation we are in, it becomes clear that the correction has not been fully realized. Currently, our strongest support level appears to be the 50-week simple moving average, which runs parallel with the Rising Wedge support trend. When SMA 50 breaks, we can expect a very deep decline.
Short
by the6ylal
BluetonaFX - NZDUSD Bear Flag SHORT IdeaHi Traders! There is a bear flag pattern on NZDUSD, and there is a possibility of a continuation of the bearish trend if we get a break of the flag channel. Price Action 📊 There is a lack of bullish momentum in the market due to a lack of market swings to counter the bearish trend; this tells us that the bears are in full control of this market. We are looking for further bearish momentum to break and close below the flag's channel. Fundamental Analysis 📰 Traders are currently very bullish on the US dollar due to the very strong economic data and positive statements from the Federal Reserve. Support 📉 0.58892: FLAG CHANNEL SUPPORT Resistance 📈 0.60483: FLAG CHANNEL RESISTANCE Risk ⚠️ No more than 2% of your capital. Reward 💰 At least 4% of your capital. Please make sure to click on the like/boost button 🚀 as your support greatly helps. Trade safely and responsibly. BluetonaFX
Short
by BluetonaFX
1
Until DXY beats this price, this is just a bear flag!Traders, The dollar continues its journey down. So, is my H&S pattern still intact? Well, on the weekly it is. Does that count? I think so. It's not like the dollar has turned the corner here and growing stronger. We are still very much in a downtrend. Even that right shoulder is still valid. And, like I said, on a weekly chart that neckline still holds. Once broken, the dollar is in trouble. What would invalidate my H&S pattern? Well, if the dollar beats that 50 day moving average and then proceeds to move up and above that 103.53 level with confirmation, I might be wrong and would have to re-evaluate at that point. Until this time, the DXY has formed a classic bear flag and I expect weakness to continue. The weaker the dollar, the more dollars it takes to buy a thing. The more dollars it takes to buy a thing, the higher the prices will go to reflect what is needed. This includes stocks. Stay tuned as we keep our eyes on this unfolding event. Stew
TVC:DXYShort
by stewdamus
BluetonaFX - GBPUSD Bear Flag FULFILLED!Hi Traders! Our bear flag opportunity from earlier today (LINK TO ORIGINAL IDEA BELOW) worked out perfectly and fulfilled our idea. There was a rally up to the channel resistance, then the bearish momentum came in, and we had a big swing to the downside to break and close below 1.26066. We expected minor support because the market was near the psychological level of 1.26000, but then there was another bear push below 1.26000 to reach 1.25910. The market now looks to be in another consolidation phase; we will either continue down or move back to the upside to test the previously broken levels as resistance. Please do not forget to like, comment, and follow. Thank you for your support. BluetonaFX
by BluetonaFX
4
BluetonaFX - GBPUSD Bear Flag Opportunity Hi Traders! There is a bear flag opportunity here on the GBPUSD 1H chart. After the bear momentum swing down (flag pole), we are now in a consolidation period (flag channel), and in a consolidation period, the market decides to either continue the trend or reverse the trend. The price action on this setup suggests to us that the market wants to continue the trend. To get this, though, we need a confirmation sign. We must break and close below the channel; the key price level that must be broken is 1.26066. If 1.26066 breaks, then we will look to target and push below 1.26000. If we do not get a break and close below the 1.26066 level, then the flag setup will fail, the trend will most likely reverse, and we will look for buying opportunities instead. Please remember to like, comment, and follow us, as your support greatly helps us. BluetonaFX
by BluetonaFX
4
Great Bear Flag Will Soon Break"The Bull Market is back!" Say the TV talking heads. But in spite of the tech runup, small caps remain stagnant and 40% of stonks still trade below their 200 DMA. So, the 'bullishness' is limited to the glamour go-go issues. NVDA, MSFT, AAPL, MSFT, AMZN, GOOG META... etc etc all go higher, while the rest languish. That ain't a bull market, it's a Bear Market Rally. And now we go VIX squeezed back down under 16, the flag is nearly unfurled imo. P/C and bear sentiment crushed to lows not seen since Jan 2022. Everyone thinks it's going higher, that's when it rolls over. Double-double top; beware of drop. Y2K meltdown took two years. This one probly be about the same. When you think it's over, think again. Bear ain't over until all hope is lost and greed crushed. Get ready.
TVC:SPXShort
by DaddySawbucks
61
FTM/USDT 20% DUMP INCOMING!!Hello everyone, if you like the idea, do not forget to support it with a like and follow. Welcome to this FTM/USDT trade setup. FTM looks bearish here. Breaks down from the bearish flag pattern and according to the pattern, it might drop 20% from here. Open a short position here and add more to the upside. Entry range:- $0.352-$0.356 Target:- 15-20% SL:- $0.367 Lev:- 5x-10x If you like this idea then do support it with like and follow. Also, share your views in the comment section. Thank You!
FShort
by CoreCrypto1
2