4/27/2024 0 Comments Ascending wedge vs bull pennant![]() The moment the price breaks through the Upper Trendline of the Pennant and closes above it, open a Long Position. I’ll explain the trading methods from a “Bull Pennant” perspective.īecause to trade Bear Pennants, you need to flip everything and do the opposite. The greater the pole height, the greater the strength of the Bulls in an Uptrend or the Bears in a Downtrend. The pattern height is measured by the length between the Last Trough (before the straight line rise) and the Peak or the Swing High of the Pennant. The Flagpole is the distance between the Last Swing Low and the Peak of the pattern. Now, let’s understand the pole formation.īefore the formation of the Pennant, the price generally moves rapidly almost in a straight line with High Volume. Upon connecting the Highs and Lows of the candles using the trendline tool, the lines converge at a single point and form a small symmetrical triangle. The Triangle consists of Lower Highs (LH) and Higher Lows (HL) and contracts as the pattern reaches the Apex (the pointed final boundary of the Pennant). The Pattern consists of a Flag Pole (one-directional movement) and a Triangle (Pennant). The candles that create the Pennant gradually get smaller in price range and they create a series of Lower Highs and Higher Lows with decreasing volume. ![]() The pattern consists of a pole and two converging trendlines that form the Pennant. ![]() To identify a Pennant you first need to understand its essential features. Let’s dive right in: What is a Pennant Chart Pattern?Ī Pennant is a trend continuation pattern, that generally appears in a strong uptrend or downtrend.Ī Pennant is a consolidated price action in which the price takes a short breather before continuing its movement in the ongoing direction. …I’m going to show everything you need to know to trade this pattern like a pro, step-by-step. This pattern breaks out in the expected direction about 80% of the time.Īnd in this complete guide on Bull and Bear Pennants… A Pennant Chart Pattern generally allows you to make a quick and humongous profit.
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