Pennant-formation
EURGBP - What Is a Pennant?What Is a Pennant?
In technical analysis, a pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines—the pennant—followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole.
Pennants are continuation patterns where a period of consolidation is followed by a breakout used in technical analysis.
It's important to look at the volume in a pennant—the period of consolidation should have lower volume and the breakouts should occur on higher volume.
Most traders use pennants in conjunction with other forms of technical analysis that act as confirmation.
Understanding Pennants
Pennants, which are similar to flags in terms of structure, have converging trend lines during their consolidation period and last from one to three weeks. The volume at each period of the pennant is also important. The initial move must be met with large volume while the pennant should have weakening volume, followed by a large increase in volume during the breakout.
Here's an example of what a pennant looks like:
Bullish pennant forming on AUDNZDBullish pennant forming. I will be awaiting a break and a retest and then entering, targeting previous key levels as a take profit zone. SL will be tight and placed just inside of the pennant formation.
I don’t normally trade on a Friday, but a pennant is a pennant. Tight stops ensure that fake-out fridays doesn’t hurt too much.
India Cements - Pennant PatternNSE:INDIACEM is currently forming Pennant Pattern.
The stock is in uptrend. In case of breakdown, that can be used to buy the dip.
USD/CHF Price Action Pattern OPPORTUNITY!!Hello Everyone,
Here we have very well pennant pattern sample on #USDCHF. If price breaks to the upside of pattern, we can look forward for long position, If breaks reversely then short position is also possible with nice rewards.
On Daily Chart , trend is up, so mostly we will see the pennant broken out through upside, according to the normal behavior.
After breaking of the pennant, please look at for more verification and after taking profit-1, it is strongly supposed to bring your stop loss to the break even point.
Please note that the ideas are not a recommendation for trading
!Good Luck!
How to Trade Bull & Bear Pennant Pattern | Pennant Tutorial !Pennant Chart Patterns Tutorial !
Pennant Pattern : Pennant Patterns are continuation chart pattern, forms when price of a security or asset makes strong upward or downward movemnt followed by a consolidation period with converging trendlines which forms a pennant before continuing to move in the same direction. Bullish pennant forms in a bullish trend market and Bearish pennant forms in a bearish trend market.
Bullish Pennant : Bullish Pennants are bullish continuation pattern that occurs in strong uptrends and it forms after a sharp climb in price then a consolidation period with converging trendlines. After formation of the pennant, price breaks above the upper trendline of the pennant and continues the bullish trend.
Bearish Pennant : Bearish Pennant is the opposite of a bullsish pennant. Bearish pennant forms after a sharp drop in price then a consolidation period with converging trendlines after that price makes a brekout below the lower trendline of the pennant and continues the bearish trend.
(* Key things to know : In a pennant pattern the period of consolidation should have low volume and the breakout should occur on higher volume like most pattern. Above average volume confirms the breakout. You can also use other indicators like MACD or RSI to know the strength of the breakout. Look at below detailed examples - )
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Thank You-
The pennant is closingI see the most recent uptrend as a part of a pennant slowly closing. Therefore I'd recommend going LONG until 110.300, then go SHORT from there :)
US 30 Bear Trend; If continuation from bear flag pennantEquities forming a pennant. Usually these are continuation patterns. A measured move down from flagtip would expect to make a bottom half of flag-pole equal to top half, for about 1800+ pips; this would drop index near 24200, or a bit less.
IMO the Megaphone Trend is still dominant. A breakout to upside is still possible if global events magically resolve favorably; this seems doubtful atm. FOMC will likely be too little too late, as usual.
You can see index fell sharply below rising TL, bounced up to retest it, and was rejected. Although another retest is possible, it seems the Bears are gaining traction now.
This alternative Bear Theory to compare & contrast with my earlier pub on a Bullish Reversal. If the Bulls fail this will unwind real fast. Still consolidating- caution is in order!
GTLA trade at your own risk, this isn't advice, just an idea.
Bullish pennant formation on USD/TRYDue to Turkish holiday TRY will be traded weakly until Thursday. At these times, values can be more volatile.
We can clearly see the bullish pennant formation on USD/TRY. Tomorrow we have to carefully watch the value. If it will break the pennants resistance, value may go up to 5,62-5,65 channel. We can see that there will be a steep movement from the narrowed bollinger bands.
Parabolic SAR shows the downturn and also moving average does not support the upmove so that we can also expect a steep down move. In case of a down break reaction, we have to watch 5,53 support line.
Good luck all.
BTC making-up for a new (small) breakout ?!?During the last weeks Bitcoin formed a big pennant from the beginning of June until now.
After two weeks of large movement (20 may until 3 Juni) followed by a consolidation period of four months we note converging trend lines. The pennant that's formed is often followed by a breakout movement in the same direction as the initial large movement. It's the second half of the flagpole. If BTC breaks the red dotted line we are much more closer to breaking big red recistance line @ around 620.
Hope this helped you further!
Have a great day :)
