Go back to Part 1: Bearish Flag Formation.Important Characteristics of Bearish Flag PatternShape of Bearish Flag:1) Flagpole:For Bearish Flag pattern to be more reliable, there should be a very sharp / steep price decrease (almost vertical, and may contain gaps) on heavy volume that makes the �Flagpole� part of the pattern.Without a steep price decrease, the pattern might be less reliable and riskier.2) Flag:A Flag part of the pattern is formed when the price movement is contained within two parallel lines, representing a brief consolidation after the sharp decline.This consolidation forms a small rectangle that frequently slopes against the preceding trend (i.e. the trend of the Flagpole part).Therefore, in case of Bearish Flag, since the preceding trend is down, the rectangle flag often...