A Bearish Pennant is a continuation pattern that appears during a strong downtrend.
It signals a brief pause before sellers regain control.
Structure:
🔻 Strong Downtrend (Flagpole)
Price drops sharply with strong selling pressure.
🔻 Tight Consolidation (Pennant)
Price compresses into a small triangle as volatility decreases.
🔻 Breakdown
Price breaks down from the pennant and continues lower in the direction of the trend.
Key Insight:
Bearish pennants show temporary hesitation, not trend reversal.
When the breakdown happens with volume, downside momentum often accelerates.
📌 Works best in strong trends
📌 Look for volume expansion on breakdown
📌 Common in crypto and high-volatility markets
The trend pauses. Sellers reload.
$XRP $DOT $AVAX
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