Technical Glossary / Chart Patterns
Bear Pennant
A sharp drop followed by a small symmetrical triangle, then a break lower.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A bear pennant is a downward pole and a small contracting pause, resolved by a break lower. Same logic as the bull pennant, opposite direction.
How to identify it
Fast decline, brief triangle that overlaps and stays in the upper part of the pole, then a close under the triangle.
Bullish reading
An upside break of the pennant fails the pattern and can be a reversal if it also reclaims the pole's start.
Bearish reading
The short is the downside break, with risk above the pennant. Do not anticipate the side while the coil is still intact.
Common mistakes
Shorting inside the triangle because the pole was down.
Limitations
Small patterns produce small samples. One news bar can mimic a pennant break and reverse.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.