A sharp decline followed by a small consolidation with converging highs and lows. It is a short breather before selling continues.
How to identify it
- Strong impulsive drop as the pole
- Highs and lows converge into a point
- Pennant is short relative to the pole
Entry
Sell the break below the pennant lower line.
Stop loss
Above the last pennant high.
Target
Pole length projected from the breakdown.
Invalidation
Price breaks the upper line and closes above it.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your bear pennant trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.