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 - )
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