Continuation pattern · bearish bias
Bearish Pennant pattern
A bearish pennant is a short, compact triangle that forms right after a sharp decline. It suggests a pause before the move lower may continue.
How to identify a bearish pennant
- A sharp decline forms the pole.
- A small converging triangle forms just after it.
- The consolidation is brief compared with the pole.
What confirms it
A close below the pennant's lower line.
What invalidates it
A close above the pennant's upper line.
How traders project a target
Subtract the height of the pole from the breakdown point.
Common mistakes
- Labelling slow sideways drift a pennant.
- Shorting inside the pennant without a break.
- Ignoring a strong uptrend on the higher timeframe.
Where it appears
Common in fast sell-offs on all timeframes.
Frequently asked questions
Is a bearish pennant reliable?
It is a well-known continuation pattern, but it only confirms on a break of the lower line.
What is the difference between a bear flag and a bearish pennant?
A bear flag consolidates in a small parallel channel. A bearish pennant consolidates in a small converging triangle.
Where is it invalidated?
A close above the upper line suggests the pause has turned into a recovery.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.