Bearish Flag Pattern Analyze - Top Right Triangle

It is a YC bearish reversal pattern comparable to an imaginary right triangle. It is made up of two sides joined at a 90 degree angle and linked by a hypotenuse.

• Horizontal Line (Long side): Connects two or more near-equal market lows.
• Vertical Line (Short side): Extends from the horizontal to the highest market peak above it.
• Hypotenuse: Connects descending market highs, indicating bounces above the horizontal.

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

• Requires a minimum of two, ideally three, descending bounces above the horizontal line.
• Preferably, the ascent should be slower than the descent back to the horizontal.

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

• A sell signal is generated when the price closes below the horizontal line after at least two bounces.
• A stop loss should be set just above the most recent bounce high before the breakout.

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