We might be forming a what we call 'Bear Flag' in technical analysis, wherein a sharp sell-off occurs followed by a pause or consolidation period before the continuation of the downtrend.
In identifying Bear Flag patterns, we need to look for a pole and a body. The 'pole' is formed by a series of strong downtrend, while the 'flag' is formed by a horizontal channel that represents the consolidation of the price.
Also, in the consolidation period (forming the flag), it is likely that the volume activity will decrease in preparation for the second 'pole'.
If the price breaks the above the channel, then the pattern is invalidated.
Disclaimer: Not a financial advice.
In identifying Bear Flag patterns, we need to look for a pole and a body. The 'pole' is formed by a series of strong downtrend, while the 'flag' is formed by a horizontal channel that represents the consolidation of the price.
Also, in the consolidation period (forming the flag), it is likely that the volume activity will decrease in preparation for the second 'pole'.
If the price breaks the above the channel, then the pattern is invalidated.
Disclaimer: Not a financial advice.