The Bearish Pennant – A powerful continuation pattern!E-mini Nasdaq-100 FuturesCME_MINI_DL:NQ1!SmartSignalssThe Bearish Pennant is a classic continuation pattern that signals the market is likely to resume its downtrend after a short consolidation. It consists of two key components: 🔻 The Flagpole – A strong, impulsive move downward, indicating high selling pressure. 🔻 The Pennant – A brief consolidation with lower highs and higher lows, forming a small symmetrical triangle. This represents a temporary pause before the next leg down. How to trade it? 1- Identify a sharp downward move (the flagpole). 2- Wait for price consolidation within the pennant. 3- A breakout below the pennant’s lower trendline confirms continuation. 4- Target = The length of the flagpole projected downward from the breakout point. Why does this happen? After a strong downward move, some traders take profits, causing consolidation. However, when sellers regain control, the trend resumes with force, leading to another leg down. ⚠️ Pro Tip: Look for increasing volume on the breakdown to confirm the move!