Ignoring the trend: bear flag patterns are most reliable in a downtrend. Trading them in a bullish or sideways market can lead to losses.
Misidentifying the pattern: not every price consolidation during a downtrend forms a bear flag. Ensure the pattern meets all the criteria before trading.
Not considering volume: volume should decrease during the formation of the flag and increase during the breakout. Ignoring volume can lead to false signals.
Poor risk management: not setting appropriate stop-loss levels or ignoring them can result in significant losses.
Expecting exact results: the target price derived from the pattern is an estimate, not a guarantee. Market conditions can change rapidly.