Definition
Bear Pennant forms after a sharp decline with a small symmetrical triangle consolidation. Like bull pennant but inverted, it shows compression before the downtrend continues. Volume decreases during formation and expands on breakdown.
Formula
Price Target = Breakdown Point - Flagpole Length
Example
Stock drops from $50 to $40 then forms a small triangle between $40-$42. Breakdown below $40 targets $30 (flagpole of $10).
FAQ
What is Bear Pennant?
A bearish continuation pattern with a sharp decline followed by converging trendlines.
How do you calculate Bear Pennant?
A common formula for Bear Pennant is: Price Target = Breakdown Point - Flagpole Length
Why is Bear Pennant important?
Bear Pennant helps investors evaluate chart patterns and make more informed decisions.