Can anyone explain a bearish flag and a bullish flag in stock trading. I have a fair idea, I want confirmation

Answer 1

A "flag" is a pattern in the stock chart. It's a short term consolidation pattern.

See for a definition and example here:
http://daytrading.about.com/library/weekly/aa032000a.htm

Normally volume is supposed to go down too.

A bullish flag is a short term consolidating in an up-trend, and a bearish flag is the opposite. A break from a flag is a good entry point.

Answer 2

"Bears are cautious animals who don't like to move too fast. Bulls are bold animals who might charge right ahead. An investor is said to be "bearish" if he or she believes the stock market will go down. A "bearish" investor will buy stock cautiously. A "bullish" investor believes the market will go up. He or she will charge ahead and put more money into the market. An investor can be bearish or bullish about a particular kind of stock.

Likewise, the term "bear market" describes a time when stock prices have been falling on the whole. A "bull market" is a period when stock prices are generally rising."

Answer 3

Flags are consolidation patterns or counter trend moves within a primary move. During an upmove prices rally to higher levels and then start moving sideways or lower. This is called consolidation. The range of the consolidation seems to be moving between two parallel lines on a chart giving the appearance of a flag. Volume decreases towards the end of the flag. If the flag occurs during an uptrend, it is called bullish flag.
A similar pattern occurs during a fall in prices which is called bearish flag.

Bear Flag is a sharp, strong volume decline, several days of sideways to higher price action on much weaker volume followed by a second, sharp decline to new lows on strong volume.
Bullish flag is a sharp, strong volume decline, several days of sideways to lower price action on much weaker volume followed by a second, sharp rally to new highs on strong volume.

Answer 4

The term "bearish flag" usually used in stock market as when the stock market index turn to lower (go down) and "bullish flag" used as when the index increase (rise). It is because the nature of bear is that he hunt his pry toward down and the bull hunt his pry upward.

Answer 5

Bearish Flag-Investor symbol indicating a negative or down market

Bullish Flag-Investor symbol indicating a postive or up market

Both symbols apply to specific time periods and investor sentiment about market conditions usually by a quarter to quarter period or over a year

Answer 6

Technical analysis doesn't work. Buy index funds.