Technical Analysis - ​Chart Pattern - Bearish Pennant

Technical Analysis - ​Chart Pattern - Bearish Pennant
A Bearish Pennant is created at some point of a severe, virtually vertical, downturn. After that significant drop in price, some sellers closed their positions even as other sellers determine to join the trend, causing the market consolidate for a moment. As soon as sufficient sellers jump in the trend, the price breaks below the bottom of the pennant pattern and continue to go downward direction.

As you can see, the slide in price proceeded after the price made a breakout to the bottom. To trade this chart pattern, we’d put a short order at the black bottom of the pennant with a stop loss above the pennant