Bitcoin: How to Trade Using the Pennant
Updated
The daily chart tells us about a bearish market if we use the Ichimoku indicator. The price is moving sideways in the borders of the pennant chart pattern. This pattern belongs to a trend-continuation group of patterns. If the price breaks the bottom line of the pattern, the downtrend will be confirmed. It will be a good idea to wait for a breakout below 10 000$ support zone as it will give an additional bearish signal.
If you want to buy, you should wait for a breakout above the upper line of the pennant, the upward movement above the cloud, and a breakout above 11 000$ resistance. The combination of these bullish signals will confirm the strength of bulls and a new uptrend.
I want to remind you that different trading strategies and different technical analysis tools can show the same market from different angles. As a result, we can have different ideas about how we should trade. It is absolutely okey. If you don't understand how it is possible, you should stop trading and focus on learning new stuff about trading.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
If you want to buy, you should wait for a breakout above the upper line of the pennant, the upward movement above the cloud, and a breakout above 11 000$ resistance. The combination of these bullish signals will confirm the strength of bulls and a new uptrend.
I want to remind you that different trading strategies and different technical analysis tools can show the same market from different angles. As a result, we can have different ideas about how we should trade. It is absolutely okey. If you don't understand how it is possible, you should stop trading and focus on learning new stuff about trading.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Note
Guys, I made my 1st mistake for more than 200 posts. It is a real and stupid mistake! I used the term "pennant" instead of using a "triangle". Of course, it is the triangle chart pattern. Yes, sometimes a pennant and a triangle can be traded in the same way, and they look closely the same in some situations - but there is a difference and we have to use it properly. I apologize for this mistake!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.