Bearish Pennant Pattern Video: Should You Trade It?

Research Performed With TrendSpider

A bearish pennant is a continuation chart pattern employed in technical analysis to forecast potential price movements. It forms when two converging trend lines connect the swing highs and lows of a stock’s price action.

Traders often mistakenly rely on this pattern to predict a continuation of the preceding downtrend, believing it indicates that sellers remain in control and will likely drive prices lower.

However, traders should be cautious with bear pennants. Extensive testing on over 1,600 trades reveals they have a low success rate of 54% and result in only a 6% price decrease.

Did you know TrendSpider can automatically detect chart patterns for you?

Read the full article here: Why Traders Must Avoid the Bear Pennant Pattern

My favorite trading tools are TrendSpider and TradingView. This research was performed with TrendSpider, but TradingView is also excellent.