Understanding Bearish Flag Pattern. . . .

A bearish flag pattern in technical analysis is a continuation pattern that indicates a price will likely continue its downward trend after a brief pause or slight upward movement. It's characterized by a sharp decline (the "flagpole"), followed by a consolidation or sideways movement (the "flag"), and then a resumption of the downtrend. 

Here's a breakdown:

Flagpole:

This is the initial, significant decline in price, representing strong bearish momentum. 

Flag:

This is a period of consolidation or a slight upward movement where the price moves sideways or slightly higher. The flag forms a pattern that resembles a flag on a Pole.

Breakout:

The pattern is confirmed when the price breaks below the lower trendline of the flag, signaling that the downtrend is likely to Continue.