THE BEARISH PENNANT FLAG PATTERN
Bearish pennants are continuation patterns that mark a pause in the movement of a price halfway through a strong downtrend, offering you an opportunity to go short.
They occur just after a sharp drop in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. The downtrend then continues with another similar-sized fall in price.
Before the flag-like pennant forms, the price experiences a sharp drop. This is known as the pennant's 'pole.'
The pole can represent either the start or the continuation of a downtrend and its size is important when you are calculating where to place the profit target for your sell trade.
Enter your short trade as soon as a candlestick has closed below the pennant's lower trend line (this has currently taken place)
VERDICT:
SELL/SHORT: $33.324
BUY:$ 32.672 down to $31.797
STOP LOSS:$34.280
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.
Bearish pennants are continuation patterns that mark a pause in the movement of a price halfway through a strong downtrend, offering you an opportunity to go short.
They occur just after a sharp drop in price and resemble a triangular flag as the price moves sideways, making gradually lower highs and higher lows. The downtrend then continues with another similar-sized fall in price.
Before the flag-like pennant forms, the price experiences a sharp drop. This is known as the pennant's 'pole.'
The pole can represent either the start or the continuation of a downtrend and its size is important when you are calculating where to place the profit target for your sell trade.
Enter your short trade as soon as a candlestick has closed below the pennant's lower trend line (this has currently taken place)
VERDICT:
SELL/SHORT: $33.324
BUY:$ 32.672 down to $31.797
STOP LOSS:$34.280
Risk Disclaimer:
Trading cryptocurrency on margin carries a high level of risk(volatile), and may not be suitable for all trades who are yet to understand how to use STOP LOSS. The high degree of leverage can work against you as well as for you.
It is your responsibility to confirm if you want to take this trade or not. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations.
If you do not fully understand these risks you must seek independent advice from your financial advisor.