Bearish Pennant – Friends, today we will know the no.1 bearish Pennant. It is a technical pattern that helps traders. It allows the continuation of the market. If the market is falling and that pattern is performed, you can understand the market will go down. The bearish pennant is a technical trading pattern it indicates the impending continuation of a downward price move.
This the popular and Useful chart pattern. You can Improve your trading by using it. You easily predict the next movement of the market by using this chart pattern.
Bearish Pennant –
This pattern is beneficial as it indicates that the market will continue its downward trend. This means after a long sale. There the market gets to consolidate for a while. And then push the market further down.
Friends, this is a unique pattern, and very little is forming in the market. Whenever it is created, it looks like a triangle; after that, we can trade on that pattern. But whatever way we deal, we must first analyze it very carefully.
Because we trade without any analysis, this trade will be hazardous because if we have not done any planning, how can we change it? You first need to know how this pattern is formed and how we can identify it.
Friends, first of all, you have to see the market momentum. And how is he reacting to his Momentum? And you have to see in the middle of the same Momentum whether it is making a poll or not. If he is making a pole, we must see that the bar should be made at the bottom’s sharp downside moment.
And after performing the poll. We need a triangle. But it won’t be like a triangle because we’ve got to be a poll inside it. And we need a consolidation that should be like a symmetrical triangle. The symmetrical triangle is usually the close of dynamic support and resistance trendlines. This pattern is also known as Rising Wedge.
Now let’s move on to the main points that will clear all your confusion.
- First of all, we need a big buy inside it.
- We Need a significant up word move before the pattern performs.
- We also need a consolidation roughly equal to falling wadge, triangle support, and resistance.
How To Take Entry
Now it comes to how we take entry into this pattern. Friends, before entering, we must know our complete analysis very well; if our research and setup are correct, then we must take the trade.
Entry On Bearish Pennant
Do you see a circle, guys? If yes, then this is your entry point in your trade. In this pattern, before you trade. You have to see. Whether the dynamic support line is breaking from the bottom or not. If it breaks the low active line, you should also watch how much time the market is consolidating there.
Both of these things have confirmed that the market has also broken down. And consolidation has also been done there. The matter is now where we have to trade.
Friends, the circle you see has been consolidated in the market; after that, a big red candle has been made, and we will put a trade below the same red candle. And after that, we have to wait for good sharp selling. As here intense selling will come With that our profit will also increase.
How To Set Stop Loss On Bearish Pennant-
Friends, we have got to know where we will take the entry, but we should also understand our stop-loss. Because trading without a stop loss is the same as driving without a driver. If we make any trade without stop loss, our loss limit is not there.
I give you only one opinion whenever you trade, set your stop loss first and put that stop loss at the same time when you sell. That trade may also clear your account if you forgot to add your stop loss.
Friends, we have entered; now let’s talk about where we will put our stop loss according to this pattern. Friends, we will place our stop loss last seen high here, which means whatever market will have made the last high inside this pattern, and from there, the market will have reversed back; at the same high, we will keep our stop loss that too with a little buffering.
And we will wait for your stop loss to hit, guys, one thing is always to keep in mind you don’t have to exit that trade until your stop loss hits because sometimes people feeling panic cut their trade-in loss, but we don’t have to do this type of thing.
How To Set Target In Bearish Pennant –
Friends, we have put our stop loss and made our trade, so let’s talk about where we will book our profit. Friends, I will reserve my profit twice my stop loss. But I have another opinion.
I will book my profit until the price difference between the two is where the triangle starts, and after that, If I do not exit my trade, I will begin to trail my stop loss from there, according to Bearish Pennant. This is part of the bearish candlestick chart patterns.
Many people do not follow their risk-reward well and keep it 1:1, but I do not give you any advice like this. I suggest booking your profit according to your patience level. If you can not hold your position for a long time, you should do hard practice with little quantity and limited loss in the bearish pennant.
And Never take any uncasual risk. If you take your end casual chance, you are not a good trader and will clear your account very soon. And always keep one thing in mind, always be confident but not overconfident. This Is the golden rule of success.
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