A bear flag is a continuation pattern, so if you see a stock swoon, look for a possible bear flag to form as price consolidates the last leg down.Characteristics of the flag pattern - sideways consolidation on declining volume. Bear flags often slant slightly upwards like this one. Volume often diminishes just before the break and expands as the selling continues in earnest. I've added the 10 EMA here to show that as the 5 and 10 come closer together, it's time to start planning the entry. Make sure to include lower shadows when you draw the lower flag line so as not to jump the gun.
When the selling momentum really picks up and volume spikes, start planning your exit, as this foreshadows the end of the move.
This is SIGM from the Briefing.com gapper list this morning.
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