Bearish Pennant Pattern

Learn to recognize and trade a bearish pennant pattern through interactive charts.

This blog is reader-supported. Please open a trading account through our links to buy us a coffee. Affiliate commissions keep our reviews impartial and ad-free.

What is a bearish pennant pattern?

A bearish pennant, also called bear pennant, occurs when the price retraces part of its prior fall, before resuming its downtrend.

Interactive charts:

Download our free chart patterns PDF for a guide to 20 classical chart patterns with over 100 interactive charts, also on TradingView.com.

Bearish pennant duration

A pennant is a short-term pattern, which tends to occur over 1 to 3 weeks, as the price consolidates.

Bearish pennant characteristics

This pattern is similar to a bearish flag, except that trendlines converge towards one another in a triangular manner.

  1. The pennant pattern rests on a pole, which represents a strong prior downward move in price. Remember that a pennant pattern cannot occur without a pole.
  2. The pennant consists of two trendlines that converge towards one another, in a triangular manner.
  3. A pennant typically retraces less than a flag. A deeper retracement could be indicative of a symmetrical triangle.

Trading volumes

Trading volumes generally rise as prices fall and disorderly selling takes place. You should expect volumes to remain subdued as the pennant forms. Lower volumes suggest that buyers lack conviction. This lays the ground for the downtrend to resume.

Bearish pennant trading tips

Look for the price to break below the lower trendline to confirm the bearish pennant pattern, before going short. The break below the trendline that provided support should happen on rising volume.


EagleFX

Market Execution Account

Trade 55 currency pairs, cryptocurrencies and CFDs on stocks, indices and commodities with market ... More

  • $10 deposit
  • 1:500 leverage ?
  • 0.7 pips EUR/USD
  • Regulators: Dominica

Forex.com

STP Pro account

Trade on raw spreads plus commissions through the Forex.com platform. Prices are sourced from top-... More

  • $100 deposit
  • 1:50 leverage ?
  • 0 pips EUR/USD
  • Regulators: USA