How Do I Interpret Bull Pennant Pattern?
How Do You Trade Bull Pennant Chart Pattern?
Bull pennant chart pattern forms what looks like a rectangle setup with a slight downward tilt. The rectangle is formed by two parallel lines that act as support level and resistance zone for price til the market 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 setup is found within an upwards trend. Bull pennant pattern is a continuation chart setup where the price retraces slightly, bull pennant chart pattern is hence a slight price pullback with narrow price action which has a slight downward tilt. The buy signal gets generated when price penetrates the upper line of the bull pennant chart pattern. The pennant portion of the bull pennant setup has price highs and price lows that can be connected by small lines that are parallel, and it looks like a small channel - pennant.
The bull pennant chart setup occurs at halfway point of a bullish upward trend & after a price break out a similar move equal to the height of the pennant pole is expected.
How Do I Interpret Bull Pennant Chart Setup?
The bull pennant setup pictured above was just a consolidation phase as the market gathered momentum to break out and move higher. The bull pennant pattern continuation signal was completed when the upper line of this Bull pennant chart pattern was broken to the upside after which the price continued to move up-ward.
How Do You Interpret Bull Pennant Chart Setup?
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