![]() ![]() ![]() In technical analysis, pennants fall under the category of consolidation patterns signaling a balanced tug-of-war between buyers and sellers during an uptrend.Ĭontrast this to bearish pennants on the short side, which are the opposite pattern but still continuation patterns. The lower boundary is the support level formed by the pullback lows and the upper trend line connects the high points of the contracting range.Īs this pennant is forming, the tightening range resembles a pennant shape angling down. Specifically, an uptrend runs into selling pressure and goes into a sideways consolidation. It gets its name from the pennant shape created by two converging trend lines. What is a Bullish Pennant PatternĪ bull pennant forms during a strong upside price move, signaling a temporary pause and potential continuation of the prevailing trend. So read on to upgrade your price action trading with a versatile new weapon by transforming this pattern from abstract chart shape into tradable strategy. The consolidation builds energy for the next leg up and identifying that coming breakout quickly allows you to ride renewed buying pressure.īy breaking down real chart examples and detailing a complete trading plan, you’ll gain confidence in trading these temporary pullbacks within an uptrend. Well, when traded properly, these temporary pauses present opportunities to enter into momentum moves at an optimal point. So why should you care about mastering the bull pennant chart pattern? Whether you’re an experienced price action trader or just starting to learn chart patterns, this guide aims to give you actionable knowledge to spot and profit from bullish pennants. And most importantly - how traders can take advantage of the bullish pennant pattern.īy the end, you’ll understand the dynamics behind bullish pennants and how to implement basic bull pennant trading strategies.This temporary consolidation phase amidst an uptrend is called the bullish pennant - and learning to recognize them can add a useful weapon to your chart patterns arsenal. Have you ever noticed a bullish price move suddenly slow down and move sideways for a while, only to break out upwards again with renewed momentum?Īs a trader, seeing this candlestick pattern unfold can signal a potentially profitable trading opportunity. Useful Tools ENīy Stelian Olar, Updated on: Jan 09 2024. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Īdvertiser Disclosure: when you click in some of the links in our website we may receive compensation from our partners or advertisers at no additional cost to our visitors. 74-89% of retail investor accounts lose money when trading CFDs. The information on this site may be accessed worldwide however it is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.ĬFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please remember that past performance results are not necessarily indicative of future results. All securities and financial products or instruments transactions involve risks. You should seek independent financial advice prior to acquiring a financial product. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Any information or advice contained on this website is general in nature only and does not constitute personal or investment advice. is a domain owned and operated by TTBCOM OÜ private limited company with registration number 16140001. ![]()
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