How Do I Analyze Bull Pennant Chart Pattern?

How Do You Trade Bull Pennant Chart 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 forex price until the FX 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 pattern is found within an upwards forex trend. Bull pennant pattern is a continuation chart pattern where the price retraces slightly, bull pennant chart pattern is therefore a slight forex price retracement with narrow forex price action which has a slight downward tilt. The 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 forex price highs and FX price lows which can be connected by small lines that are parallel, and it looks like a small channel - pennant.

The bull pennant chart pattern occurs at halfway point of a bullish upward forex trend and after a FX price break out a similar move equal to the height of the pennant pole is expected.

How Do I Interpret Bull Pennant Chart Pattern?

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

How Do I Interpret Bull Pennant Chart Pattern?