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Bitcoin to Crash from a downward Bear Flag Pattern

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BITBAY:BTCUSD   Bitcoin / U.S. Dollar
What Is a Flag?
In the context of technical analysis , a flag is a price pattern that, in a shorter time frame, moves counter to the prevailing price trend observed in a longer time frame on a price chart. It is named because of the way it reminds the viewer of a flag on a flagpole.

The flag pattern is used to identify the possible continuation of a previous trend from a point at which price has drifted against that same trend. Should the trend resume, the price increase could be rapid, making the timing of a trade advantageous by noticing the flag pattern .

A flag pattern , in technical analysis , is a price chart characterized by a sharp countertrend (the flag) succeeding a short-lived trend (the flag pole).
Flag patterns are accompanied by representative volume indicators as well as price action.
Flag patterns signify trend reversals or breakouts after a period of consolidation.

How a Flag Pattern Works
Flags are areas of tight consolidation in price action showing a counter-trend move that follows directly after a sharp directional movement in price. The pattern typically consists of between five and twenty price bars. Flag patterns can be either upward trending ( bullish flag ) or downward trending ( bearish flag ). The bottom of the flag should not exceed the midpoint of the flagpole that preceded it. Flag patterns have five main characteristics:

The preceding trend
The consolidation channel
The volume pattern
A breakout
A confirmation where price moves in the same direction as the breakout

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