Forex Tamil India Bearish Pennant Chart Pattern Forex Trading Strategy

Bearish Pennant Chart Pattern Forex Trading Strategy

The Bearish Pennant Chart Pattern Forex Trading Strategy is a trading strategy that is based on the bearish pennant chart pattern.

The Bearish Pennant Chart Pattern ForexTrading Strategy only requires you to be familiar with how to draw trendlines & secondly, be able to spot the Bearish Pennant Chart Formation when its happening.

This trading system is similar to the Bullish Pennant Chart Pattern Forex Trading Strategy except for one thing only: its the complete opposite.

THE BEARISH PENNANT CHART PATTERN
Here’s what a Bearish Pennant forex chart pattern looks like:

Bearish Pennant Chart : price action trading strategies

Bearish Pennant Chart Pattern Forex Trading Strategy

Notice how it is the exact opposite of the Bullish Pennant Pattern?
>Notice that Pennant Chart Patterns (bullish or bearish) are different from the Flag Chart Patterns (either bullish or bearish)
>with the bearish pennant pattern, you should have a market already in an existing downtrend.
at some stage, this downward trend will pause & consolidate for some time until a breakout happens.
>The breakout usually happens to the downside.
>with the Bearish Pennant Forex Strategy, we will be entering short orders (sell orders) when the breakout happens to the downside.

HOW TO SPOT THE BEARISH PENNANT CHART PATTERN FORMING
>First, there has to be an existing downtrend.
>Next, watch for price to pause and slow down and consolidate.
>You need to draw 2 converging trendlines: one connecting the decreasing peaks (the downward trendline) and the other trendline connecting the increasing bottoms(upward trendline).
>wait and watch for price to break the upward trendline which was drawn connecting the increasing bottoms (or swing lows).

You have to be careful though. Sometimes, the peaks and bottoms may not be so clear when this bearish pennant chart is forming.

TRADING RULES OF THE BEARISH PENNANT CHART PATTERN FOREX TRADING STRATEGY
watch and wait for the upward trendline to be intersected.
the intersecting candlestick MUST close below the upward trendline.
then place a sell stop order 3-5 pips below the low of the intersecting candlestick
then place your stop loss order anywhere from 5-10 pips above the high of the intersecting candestick.
if that intersecting candestick is a true breakout, price will fall and activate your sell stop order.
For take profit targets, you have a couple of options:
set your take profit level at the price level where your profit will be 3 times what you risked.
or you can use a previous swing low point (bottom) to set your take profit target level.

Source

FOREX TRADING / FOREX TRAINING / FOREX ACCOUNT OPENING

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