Chibuike_Odoh

Pennant pattern - DOTUSDT Review 📚

Education
BINANCE:DOTUSDT   DOT / TetherUS
Good day everyone.
Today, I'll be discussing on the pennant chart pattern.

1. DEFINITION
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.

2. ENTRY
The entry of a pennant chart pattern is simply the breakout ( for an uptrend continuation) or the breakdown ( for a downtrend continuation).

3. TARGET ( TAKE PROFIT).
The take profit levels of a pennant are the swing resistance levels (for breakout ⬆️) or the swing support levels (for a breakdown ⬇️). The target level of a pennant pattern breakout can also be identified by using the fibonacci extension tool.

4. SETUP INVALIDATION AND STOP LOSS
The setup invalidation of a pennant pattern is set below the previous swing low (for a breakout ⬆️) and above the previous swing high (for a breakdown ⬇️).
The stop loss can be less than or equal to the setup invalidation, but not greater.

TRADE EXAMPLE
I'll be using my analysis on DOTUSDT as a trade example on pennant chart patterns.
The market played out as expected from my previous analysis.
My buy entry ⬆️ - breakout above the pennant resistance.
My targets 🎯- swing resistance levels, fibonacci extension level (1.0).
My setup invalidation ❌ - breakdown below the previous swing low.
My stop loss 🔴 - my setup invalidation / 2.

Thank you.

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