#EDUCATION LAB Bearish Pennant Pattern A bearish pennant i | Crypto Bull Crypto Experts

#EDUCATION LAB

Bearish Pennant Pattern

A bearish pennant is a technical chart pattern that appears during a downtrend in the price of an asset. It is formed by two converging trendlines that create a small symmetrical triangle or "pennant" shape.

The bearish pennant pattern is characterized by a significant price decline, followed by a period of consolidation where the price range narrows and volatility decreases.

The converging trendlines of the pattern form the boundaries of the consolidation phase, with the upper trendline acting as resistance and the lower trendline acting as support.

The bearish pennant pattern is considered a continuation pattern, indicating that the downtrend is likely to continue following the consolidation period.

Traders and investors may use this pattern to identify potential selling opportunities, with a stop-loss order placed above the upper trendline to manage risk.
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