Pennant Bearish Chart Pattern – School

What is the Pennant Bearish

The Pennant Bearish is a multiple candlestick chart pattern that indicates a continuation of a downtrend in the market. This pattern is called Pennant Bullish as it is the shape of a pennant.

Understanding the Pennant Bearish

The Pennant Bearish chart pattern consists of multiple candlesticks. The first candlestick is bearish and indicates that the market is in a downtrend. The next few candlesticks are in consolidation, which reveals that the bears’ pressure on the market has slowed. The final candlestick is bearish and indicates the market is back in a downtrend.

How to Trade Pennant Bearish?

In downtrend when Bearish Pennant pattern appear we are going to open position in trend direction (sell position).

After pattern is formed we are going to use support (bottom red dotted line) and resistance (upper red line) levels.

Open sell position – after price close (candlestick) bellow support line (bottom red doted).

Take profit – after you open sell position you should place your stop loss above resistance line (upper red doted line).