Bullish Pennant Chart Pattern Explained
- Bullish Pennant and Bearish Pennant are both trend continuation chart patterns.
- In which Bullish Pennant is an uptrend continuation chart pattern.
- And Bearish Pennant is downtrend continuation chart pattern.
- In this article, we will discuss about the Bullish Pennant chart pattern:
BULLISH PENNANT CHART PATTERN
- Bullish Pennant pattern is similar to the flag and pole pattern.
- A Bullish Pennant is an uptrend continuation chart pattern that formed after a sharp price movement to the upside.
- After the sharp upside movement, the price is enter in a consolidation phase.
- This pattern formed a converging trend lines during their consolidation phase.
- A sharp upward movement of the price is called the 'Pole'.
- And a consolidation phase is called the 'Pennat'.
to the upside.
- The previous trend of the market was up, and after the pattern breakout the trend is continuing on the up side.
- Therefore, this pattern is called the bullish continuation pennant pattern.
• When do the Bullish Pennant pattern work well ?
- The Bullish Pennant pattern work well, when the previous trend of the market is an uptrend.
- As well, this pattern would work well if it formed after a breakout of an important resistance level.
• When should the Bullish Pennant pattern be avoided ?
- Avoid a bullish pennant pattern if it formed in a bearish (downtrend) market.
- Because of selling pressure in a downtrend, there is a high probability that the pattern will fail.
• Entry :
- Take entry when the candle is close above the pennant.
• Stop Loss :
- SL should be placed below either the previous swing or below the breakout candle.
• Target :
- The target should be the parallel distance of the pole.
Thank For Reading Article.......📝
Read More >>
No comments: