Simple, this chart is for 1h period (1 candle = 1h). The indicators tells you the next 1h period (bullish or bearish). This chart is bullish since the last 15 period (inside the triangle). You must do the same with a 4h and a daily, weekly if you want to know better on a long term. It can be bullish for the next 3 hours but on a daily charts the same indicator can indicate that it's bearish. Depend if your a day trader, swing trader or long terme investor (buy and hold)
Breko
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@Stef_Gee, thank you for response :)
Ok for period depending trading style (even I find difficult to manage it)
Just I don't understand why my pennants are never right.. this one had seems ok
Stef_Gee
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@Breko, This pennant is bearish, you are right on that ! What is bull actually (on this 1h chart) is the "inside" of this pennant. You follow me ?
This is a 15/16 period pennant, it can be a 20 or 30 one too, we don't know now we watch. We now have 2 trend line that give us a guideline. You follow me ?
Usually (but not always) the price must touch 2 /3 or 4 time on each side (adjust your upper line on both the top (higher price of the period) of the 3 candles
On the chart now it became a bearish FLAG (looks like channeling) This is the time that we "watchlist", if it breakup we go long and if it break down we short play (or sell if you already bought it, to re-buy lower) The secret is to always adjust on the price action (monitoring), chart says everything we need to know ! We have to listen.
You have a perfect example with this one: The PENNANT became a FLAG and eventually can be a new CHANNEL UP trending
('cause there's a limit to have a 50 period flag ;)
Last thing, for you to understand look at the DAILY chart, you see ? No pennant and no flag actually, it's gone !
So on a daily base this flag /pennant have NO influence on the price movement.