What is a bearish pennant pattern?
volume The volume should be low when the pennant is being formed. When the pennant breaks out, however, you want to see a spike in volume. Target The target for a bearish pennant pattern is found by subtracting the top of the highest point to the bottom of the lowest point and subtracting that from support. The highest point is $106, the lowest is $97. So we would expect it to go $9 points lower than support which was $101. That gave us a target of $92. This stock hit $92 consolidated and then broke down even lower. Trading the pattern A professional trader can sell during the breakout and have a stop set above support. Other Chart Patterns A few other patterns that can be used to predict market movement are; Double Top - Usually marks the end of a bull market or bull trend. Bump and Run - This is when a stock fails to continue going up and becomes a bearish signal. Bear Flag - A short term bearish signal
Other Chart Patterns |
