Bearish Continuation Patterns (new).

<strong>Bearish Descending Triangle:</strong>

<strong><img src="file://localhost/Users/jykhor/Library/Caches/TemporaryItems/msoclip/0/clip_image002.png" alt="" width="434" height="212" /></strong>

A Bearish Descending Triangle is a continuation pattern that typically appears after a decline in price. Price consolidates briefly in the triangle and usually continues in the same direction as the previous trend.

<strong>Measuring the move: </strong>&nbsp;Add the vertical distance of the open end of the triangle to the to the price at the breakout and this would give you an approximate price target for the next run down in price.

<strong>Trading the pattern:&nbsp; </strong>Traders should be watching the lower trend line of the pattern. A bearish entry signal is when price pierces through the lower trend line. An important thing to note when trading this pattern is avoiding a false breakout. By entering when prices close below the lower trend line or waiting for a retest of the lower trend line, traders can prevent themselves from entering on a false breakout. <strong>&nbsp;</strong>

<strong>Bear Flag:</strong>

<strong><img src="file://localhost/Users/jykhor/Library/Caches/TemporaryItems/msoclip/0/clip_image004.png" alt="" width="434" height="206" /></strong>

A Bear Flag is a continuation pattern that generally occurs after a decline in price. After a period of price consolidation in the flag, prices generally continue in the direction of the prior trend.&nbsp;

A Bear Flag can be identified a long red candlestick that resembles a flagpole, and a flag which resembles a rectangle marked by two parallel lines that slope against the prevailing trend.

<strong>Measuring the move:</strong> Add the vertical distance of the flagpole to the breakout and this would give you an approximate price target for the next run up in price.

<strong>Trading the pattern: </strong>Traders should be watching the lower trend line of the pattern. A bearish entry signal is when price pierces through the upper trend line.

<strong>Bearish pennant:</strong>

<strong><img src="file://localhost/Users/jykhor/Library/Caches/TemporaryItems/msoclip/0/clip_image006.png" alt="" width="434" height="207" /></strong>

A Bearish Pennant Pattern is a continuation pattern that usually follows a downward move in price. After a brief price consolidation in the pennant, prices generally continue in the same direction as the prior trend.

A Bear Flag can be identified a long red candlestick that resembles a flagpole, and a pennant that is identified by two converging trend lines that form a symmetrical triangle.

<strong>Measuring the move:</strong> The price target for the next run down in price is approximately the same vertical distance as the flagpole

<strong>Trading the pattern: </strong>Traders should be watching the lower trend line of the pattern. A bearish entry signal is when price pierces through the lower trend line.<strong></strong>