Bearish Flag Pattern Analyze - Horizontal Resistance

It is a trend continuation Yard Chart pattern that is widely recognized in the current technical literature.

• Downtrend Identification: The market exhibits a downtrend, reaches a low, then rebounds to form a high.
• Resistance Formation: After setting a new low, the market rebounds to a horizontal level that previously started the decline.

Wait for at least two valid bounces and a clean structure before planning entry.

• Entry Point: Initiate a bearish trade when price nears established horizontal resistance.
• Risk Management: Position a stop loss above the resistance line.

A bearish setup is confirmed after breakdown and controlled retest near the key level. Place stop loss above invalidation.

• 10% Alert: Triggered when the price retraces 90% of the distance from recent low to previous resistance.
• 5% Alert: Triggered when the price retraces 95% of the same distance.

Historical cases show meaningful downside when confirmation and risk management are respected.