How to Analyze Pennant Pattern Gold Chart Pattern

How to Read Pennant Pattern Gold Chart Pattern

There are two types of xauusd trading pennant patterns - bullish pennant chart pattern and bearish pennant chart pattern.

To trade these xauusd chart patterns a trader requires to learn about the gold trading analysis of bull pennant chart pattern and bear pennant trading pattern.

Bull Pennant Trading Pattern

Bull pennant chart pattern forms what looks like a rectangle pattern with a slight downward tilt. The rectangle is formed by two parallel lines that act as support level and resistance level for the gold price until the gold price breaks out. In general, the bull pennant chart pattern will not be perfectly flat but it will be sloping and having a slight tilt.

The bull pennant chart pattern is found within an upwards xauusd trend. Bull pennant chart pattern is a continuation chart pattern where the price retraces slightly, bull pennant pattern is therefore a slight gold price retracement with narrow gold price action that has a slight downwards tilt. Buy signal is generated when the price penetrates the upper line of the bull pennant chart pattern. The pennant portion of the bull pennant chart pattern has gold price highs & gold price lows which can be connected by small lines that are parallel, giving it what looks like a small channel - pennant.

The bull pennant pattern occurs at halfway point of a bullish upwards xauusd trend & after a gold price breakout a similar move equal to the height of the pennant pole is expected.

Bull Pennant Chart Pattern - How to Analyze a Bull Pennant Chart Pattern

The bull pennant pattern shown above was just a consolidation period as the gold market gathered momentum to break out & move higher. The bull pennant chart pattern continuation xauusd signal was completed when the upper line of this Bull pennant pattern was broken to the upside after which the gold price continued heading upwards.

Bear Pennant Chart Pattern- How to Read Pennant Pattern Gold Chart Pattern

This bear pennant chart pattern is found in a downwards trend. The bear pennant chart pattern is a trend continuation pattern where the price retrace slightly with a narrow price action that has a slight upward tilt. Sell signal is generated when price penetrates the lower line of the inverted bear pennant pattern. Pennant portion of this bear pennant chart pattern has gold price highs & gold price lows which can be connected by small lines that are parallel, giving the bear pennant trading pattern the look of a small channel - inverted pennant.

Bear Pennant Chart Pattern - How to Analyze a Bear Pennant Chart Pattern

The bear pennant pattern above was just a consolidation period for the gold market trend prior to more selling and resuming of the downwards xauusd trend. The continuation xauusd signal from the bear pennant chart pattern was completed when lower line of this bear pennant pattern was broken to the downside after which the gold price moved downwards.

How Do I Interpret Pennant Pattern Gold Chart Pattern