Daniel-Malik

Educational Chart - Pennant trading technique

TVC:SPX   The Standard&Poor's Index
582 9 27
My views about pennant trading are a bit different from many. Here i share my view, would appreciate your feedback.
Comment: If you have any question left in your mind , feel free to ask me
How can you place a pending order when you are already in the trade either long or short?
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if the trend before the pennat was bullish and you were in long position , so try to hold your long and make your SL down to pennant and vice-virsa
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how are you going to deal with false breakout? both pending order will get hit and you are screwed.
+1 Reply
a good question, What i persoanlly sugguest is to take a GAP of atleast 8-10 pips, because false breakout cant be more then 5-7 pips hardly
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lkthomas Daniel-Malik
I am not sure about S&P, but for FX 5-7 pips wouldn't protect you for anything
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ok ! what will you do if you enter with one direction and soon you recognized that it was a fakeout ?
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lkthomas Daniel-Malik
now I don't trade breakout like that, I wait until pullback; Before I would close current position and open reverse direction position, if it swings, I am pretty much screwed, LOL
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Would this not be more of a symmetrical triangle, ie. yes either side if probable/possible
From what I have seen a continuation pennant would be sloping down in this case (bullish)?

Just wondering on your perspective, thanks for the post.
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Daniel-Malik VitruvianTrader
Perhaps that a probability as market is dynamic and there are many perspectives which are plausible. thx for asking.
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