XAUUSD FORMED A BULLISH PENNANT PATTERN - ANOTHER BULLISH IMPULSE?📈
Gold has been under buying pressure since the beginning of the year. Since April 21 the price has been consolidating. Now the graph represents the bullish pennant.
What is a bullish pennant?
Pennant pattern: Short-term continuation pattern after a sharp price move (flagpole), forming a small symmetrical triangle. Signals trend resumption, lasts 1-3 weeks with declining volume. So, first of all, identify a flagpole and a consolidating triangle. Confirm it with indicators (bullish/bearish divergence). After that you may trade breakout in trend direction (buy bullish, sell bearish) with volume spike. Set your stop-loss below/above the opposite side of pennant. You may set your take-profit at a flagpole height from a breakout.
Here we see the divergence on RSI 4-h timeframe. If the price breaks the upper border of the pennant pattern you may open long position.
Gold has been under buying pressure since the beginning of the year. Since April 21 the price has been consolidating. Now the graph represents the bullish pennant.
What is a bullish pennant?
Pennant pattern: Short-term continuation pattern after a sharp price move (flagpole), forming a small symmetrical triangle. Signals trend resumption, lasts 1-3 weeks with declining volume. So, first of all, identify a flagpole and a consolidating triangle. Confirm it with indicators (bullish/bearish divergence). After that you may trade breakout in trend direction (buy bullish, sell bearish) with volume spike. Set your stop-loss below/above the opposite side of pennant. You may set your take-profit at a flagpole height from a breakout.
Here we see the divergence on RSI 4-h timeframe. If the price breaks the upper border of the pennant pattern you may open long position.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join me, I'll guide you to PROFITABLE TRADING💵!
Telegram Channel: t.me/forextradersliveofficial
Telegram Channel: t.me/forextradersliveofficial
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.