A pennant is a technical chart pattern that forms after a strong price movement and indicates a period of consolidation before the price continues in the same direction as the prior trend. It resembles a small symmetrical triangle, where the two trendlines converge towards each other. A pennant is usually a short-term continuation pattern and can be either bullish or bearish, depending on the prior trend direction.
In the scenario you described for BNBUSDT:
Pennant Formation: BNBUSDT is forming a pennant pattern on the weekly timeframe. This suggests that after a significant price movement, the price has started to consolidate within a narrowing range. The converging trendlines create a visual representation of decreasing volatility and uncertainty in the market.
Weekly Support: The pennant is forming around the $232 area, which serves as a weekly support level. This support level is significant because it has historically prevented the price from declining further. The pennant pattern forming on this support level could imply that market participants are undecided about the next direction, potentially leading to a breakout in the direction of the prior trend.
Liquidity Grab and Potential Bearish Impulse: You mentioned that the price might grab new liquidity around the $280 area and potentially create a new bearish impulse. This scenario suggests that the price could experience a downward move after consolidating within the pennant. A bearish impulse could indicate a potential continuation of the prior downward trend.
Retest of Support as Resistance: According to Plancton's Rules, a new short position is suggested if the price loses the $230 support level and subsequently retests this level as a new resistance. A retest of a previous support level as resistance is a common technical setup and could signify a shift in market sentiment from bullish to bearish.
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Follow the Shrimp 🦐
Keep in mind.
In the scenario you described for BNBUSDT:
Pennant Formation: BNBUSDT is forming a pennant pattern on the weekly timeframe. This suggests that after a significant price movement, the price has started to consolidate within a narrowing range. The converging trendlines create a visual representation of decreasing volatility and uncertainty in the market.
Weekly Support: The pennant is forming around the $232 area, which serves as a weekly support level. This support level is significant because it has historically prevented the price from declining further. The pennant pattern forming on this support level could imply that market participants are undecided about the next direction, potentially leading to a breakout in the direction of the prior trend.
Liquidity Grab and Potential Bearish Impulse: You mentioned that the price might grab new liquidity around the $280 area and potentially create a new bearish impulse. This scenario suggests that the price could experience a downward move after consolidating within the pennant. A bearish impulse could indicate a potential continuation of the prior downward trend.
Retest of Support as Resistance: According to Plancton's Rules, a new short position is suggested if the price loses the $230 support level and subsequently retests this level as a new resistance. A retest of a previous support level as resistance is a common technical setup and could signify a shift in market sentiment from bullish to bearish.
–––––
Follow the Shrimp 🦐
Keep in mind.
- 🟣 Purple structure -> Monthly structure.
- 🔴 Red structure -> Weekly structure.
- 🔵 Blue structure -> Daily structure.
- 🟡 Yellow structure -> 4h structure.
- ⚫️ Black structure -> <= 1h structure.
Comment:
the price is following the arrow
Comment:
12%
Comment:
16%