Pennants and Flagssubmitted by alfafinancials5 to u/alfafinancials5 [link] [comments]
A flag in the shape of a triangle with a tapering tail towards the end is referred to as Pennant. A similar looking pattern is formed immediately after a major movement in the price chart of a financial trading and forex trading asset in the shape of a triangular flag that can be seen by connecting the trend lines which are converging towards the end of the chart and then follow the same path of the initial trend with an outbreak. Pennants can be classified as Bearish Pennant and Bullish Pennant depending on its trend direction. This is how a Bearish and Bullish Pennant depicted in a Chart.
Bearish Pennants can be seen during a strong downtrend in the price chart followed by a short period of up’s & down’s, the trends lines of which resembles a triangular flag. Then there comes another sharp downtrend of fall in price which bestows an opportunity to make a short trade which is profitable from a huge fall in price.
BULLISH AND BEARISH PENNANT
Bullish pennant is almost the inverted version of bearish pennant which can be seen during a strong uptrend in the price chart. After forming a pennant pattern, the upward trend continues with a sharp break out and this paves a way to be profitable from the price rise. Bullish pennant is helpful for making long trades when the price rises for the second time.
ADVANTAGES OF BULLISH AND BEARISH PENNANT
The advantage of the bearish pennant in trading is that it allows us to make a short trade which will be beneficial to the traders to gain profit up to a certain level from a huge fall in the price.
Similarly, bullish pennant which is formed during the rise in price chart can also be profitable for the traders when used to make long trade when the price rises for the second time.
Flag patterns are formed when the price chart moves in a narrow path sideways preceded & followed by a steep break out or breakdown depending on the type of trend and can be differentiated as the Bullish and the Bearish Flag.
BULLISH FLAG AND BEARISH FLAG
The Bullish flag is a result of a sudden uptrend in price rate which looks like a pole and is followed by a collective narrow path of highs & lows which depicts the shape of a flag and then again follows the trend line with a breakout. On the contrary, the Bearish flag is an inverted version of the Bullish flag which finds its existence during a downtrend instead.
BULLISH FLAG AND BEARISH FLAG
TWO TRADE ENTRY SPOTS
Entry spots can be identified in two spots, the first entry spot occurs during the flag break while the second entry stop marks its place during the break of the pole.
TWO TRADE STOP-LOSS SPOTS
This Flag pattern is of two measured stop-loss levels. One can be placed under the upper trend line on the uptrend and the other at the lower trend line on the downtrend.
The gist of the above information would help the traders to tune their trading knowledge and also be helpful for the people who are beginners in trading to trade without much chaos.
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Bearish Pennants are simply the opposite of the Bullish Pennant. Bearish Pennants are continuation patterns that occur in strong downtrends. They always start with a flagpole – a steep drop in ... A pennant pattern must be preceded by a strong up or down movement that resembles a flag pole. If there is no flagpole, then it is a triangle and not a pennant. A pennant tends to form a shallow setback (typically less than 38% of the flagpole). A deep retracement is indicative of a triangle rather than a pennant. Bearish Flag Pattern Trading. A bearish flag pattern is created with price moving in a downtrend and then pausing sideways to create the ‘flag’. After a strong move price will often consolidate or rebound in a consolidation pattern slightly higher (if in a downtrend) before then strongly continuing with the trend. In the bearish volume trend, the beginning happens the same way as the bullish pattern with increased volume but after that, it tends to hold. Flag Trading- Pennant or Wedge. Flag trading can also be identified in the consolidation area through markets. If the flag lines converge, the flag formation can be said to be a pennant or a wedge ... The bullish pennant sample is the alternative of the bearish pennant sample and nearly just like a bullish flag sample, with the exception that the pennant is fashioned by converging development traces forming a symmetrical triangle. The chart under, Determine 7, exhibits a bullish pennant instance and the way it may be traded. The flag or pennant chart pattern is formed right after a bullish or bearish price movement followed by a period of consolidation. This is where price tends to take a pause before continuing in the original direction of the trend. Flags and pennants chart patterns are easy to identify and can be found just after an important news release such as the NFP/unemployment reports or other important ... As with Flags, there are two types of Pennants – bullish Pennant and bearish Pennant. They are traded the same way as the Flag and the target rules are absolutely identical. If the Flag is bullish, you go long when the price breaks the upper level of the Flag. If the Pennant is bullish, you go long when the price action breaks the upper level of the triangle correction.
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Bull and Bear Flag, Bullish and Bearish Pennant Explained // Want more help from David Moadel? Contact me at davidmoadel @ gmail . com Subscribe to my YouTub... How to Trade Bearish and the Bullish Flag Chart Patterns Forex Trading Strategies Welcome Friends to 's Biggest Technical Analysis Youtube Channel https://fo... Learn how to spot a bullish and bearish pennant patterns on your charts and how to trade them... Learn more about forex trading at https://www.youtube.com/uk... Bearish flag formations signal a move lower in forex and stocks. Bearish flag trade setup is a bearish continuation pattern. This bearish chart pattern is fo... Bearish Flag Chart Pattern. http://www.financial-spread-betting.com/course/flag-and-pennant.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE What are ... How to Trade Flag and Pennant Chart Patterns Technical Analysis Best Forex Trading Strategy Flags and seemingly common patterns are usually found in the price chart of financially traded assets ... Bearish flag trade setup and bearish pennant trade setups are the opposite of the bearish flag trade setup in forex where the price drops and the bearish flag setup signifies the move lower. Both ...