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Pennantpattern

Pennant — Trend Is Your Best Friend 🚩 Pennant — Trend Is Your Best Friend 📈 drive.google.com 🔍 Introduction The Pennant is a trend continuation pattern, resembling a small triangle that forms after a strong initial move (known as the “flagpole”). It is similar to the Flag pattern, but with one key difference: the body of the Pennant is formed by two converging trendlines, rather than parallel ones. 📐 Pattern Description The Pennant forms after a strong, impulsive price move, indicating that the trend is likely to continue after a short pause. Like the Flag, the Pennant consists of two main components: The flagpole — a sharp, directional move (either bullish or bearish) The Pennant body — a brief consolidation shaped like a symmetrical triangle 🔺 🟢 A bullish pennant forms after a strong upward move 🔴 A bearish pennant follows a strong downward move 🧠 Market psychology behind the pattern: After a big move, many traders expect a reversal and begin taking counter-trend positions. But when the breakout occurs in the direction of the original trend, it triggers a wave of new orders, pushing price even further. That’s why the Pennant is often used to enter trades in the direction of the dominant trend. 📉 Volume behavior is also key: High volume during the initial move Low volume during the Pennant’s consolidation Rising volume on the breakout This volume pattern reflects renewed trader interest and often leads to a more explosive breakout compared to a Flag, due to the tightening nature of the consolidation. ⚠️ A weak or sloppy move before the Pennant weakens the signal and increases the risk of false breakouts. 🎯 Entry & Stop-Loss Strategy 📥 Entry: After a confirmed breakout above the Pennant’s resistance (or below it for bearish setups) 🛑 Stop-loss: Placed just below the last local low before breakout 💰 Profit Target: Partial take profit at the top of the flagpole Full target = the height of the flagpole projected from the breakout point (aka the Measured Move) Always account for key support/resistance levels to define the potential range 💡 The Pennant often offers great risk/reward due to its tight structure and explosive potential. 💡 My Pro Tips for Trading Pennants ✅ Pennant Pattern Criteria Trend continuation pattern A strong, nearly vertical move preceding the Pennant Triangle-shaped consolidation (two converging lines) The Pennant body must be shorter than the flagpole The lowest point of the Pennant should not exceed half the length of the flagpole Breakouts should happen in the direction of the initial trend Tight range before breakout increases accuracy 📈 What Strengthens the Signal Sharp, clean, directional initial move (strong flagpole) ⚡ High volume on the initial move, and volume surge on breakout 💥 ⚠️ What Weakens the Signal Choppy or weak price action before the Pennant 🫤 Lack of volume during the flagpole or breakout 💤 ✅ Examples of My Winning Pennant Setups 🔗 EURUSD Bearish Pennant — Ready to Drop ❌ Examples of My Losing Setups 🔗 XAUUSD Bullish Pennant — Failed Follow-through 💬 Do You Trade Pennants? They’re one of the most powerful continuation patterns when paired with clean price action and volume confirmation. What’s your experience with Pennants? Share your wins — and fails — below 👇👇
Education
by ProfessorSingapore
1
What is a Bearish Pennant Patterns?Imagine a rollercoaster: first, a steep drop (downtrend), then a brief pause (consolidation) before another drop. 💜 If you appreciate our charts, give us a quick 💜 This pause creates a symmetrical triangle of highs and lows, indicating market uncertainty. When prices break out below this triangle, it signals a likely continuation of the downtrend. 1️⃣ The Downward Journey: A clear, steep downtrend sets the stage, indicating prices are likely to fall. Think of it as the initial dive on the rollercoaster. 2️⃣ The Pennant Pause: Consolidation forms a triangle, showing market indecision. This is akin to the rollercoaster momentarily leveling out before the next plunge. 3️⃣ The Breakout Moment: A swift breakout below the triangle confirms the downtrend. It's like the rollercoaster taking a sudden, sharp drop. 🚀 How to Ride the Bearish Pennant: Step 1: Spotting the Pattern Look for a well-defined downtrend followed by consolidation forming a triangle. The triangle's upper line is resistance; the lower one is support. Step 2: Timing the Breakout Be patient; wait for a rapid breakout below the triangle. High trading volume confirms the breakout's strength. Step 3: Making Your Move Enter a short position right after the breakout or when the breakout candle closes. This aligns your trade with the downtrend momentum. Step 4: Planning Your Exit Set a profit target based on your risk tolerance. Implement a stop loss above the breakout candle's highs to guard against false breakouts. Pro Tips for Success: ✅ Stay in the Downtrend Lane: Only trade bearish pennants within a downtrend. Avoid it during uptrends or sideways markets for optimal results. ✅ Don't Jump the Gun: Wait for the breakout confirmation to avoid falling for false signals. Patience pays off! ✅ Volume: Your Secret Weapon: Strong breakouts occur with high volume. More participation means stronger market conviction. ✅ Plan Your Exit: Have a clear exit strategy. Acknowledge that breakouts might fail, and be ready to exit if the trade goes south. Mastering the bearish pennant pattern requires a blend of technical expertise, patience, and disciplined execution. Think of it as your guide to mastering market dips and making strategic moves. Happy trading!
Education
by Vestinda
EURGBP - What Is a Pennant?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. Pennants are continuation patterns where a period of consolidation is followed by a breakout used in technical analysis. It's important to look at the volume in a pennant—the period of consolidation should have lower volume and the breakouts should occur on higher volume. Most traders use pennants in conjunction with other forms of technical analysis that act as confirmation. Understanding Pennants Pennants, which are similar to flags in terms of structure, have converging trend lines during their consolidation period and last from one to three weeks. The volume at each period of the pennant is also important. The initial move must be met with large volume while the pennant should have weakening volume, followed by a large increase in volume during the breakout. Here's an example of what a pennant looks like:
Education
by Yuriy_Bishko
5
How to Trade Bull & Bear Pennant Pattern | Pennant Tutorial !Pennant Chart Patterns Tutorial ! Pennant Pattern : Pennant Patterns are continuation chart pattern, forms when price of a security or asset makes strong upward or downward movemnt followed by a consolidation period with converging trendlines which forms a pennant before continuing to move in the same direction. Bullish pennant forms in a bullish trend market and Bearish pennant forms in a bearish trend market. Bullish Pennant : Bullish Pennants are bullish continuation pattern that occurs in strong uptrends and it forms after a sharp climb in price then a consolidation period with converging trendlines. After formation of the pennant, price breaks above the upper trendline of the pennant and continues the bullish trend. Bearish Pennant : Bearish Pennant is the opposite of a bullsish pennant. Bearish pennant forms after a sharp drop in price then a consolidation period with converging trendlines after that price makes a brekout below the lower trendline of the pennant and continues the bearish trend. (* Key things to know : In a pennant pattern the period of consolidation should have low volume and the breakout should occur on higher volume like most pattern. Above average volume confirms the breakout. You can also use other indicators like MACD or RSI to know the strength of the breakout. Look at below detailed examples - ) Please Like & Comment and Stay Tuned ! 👍 Thank You-
BITSTAMP:BTCUSDEducation
by tapasdhanadana
5