How Do I Analyze Pennant Pattern Forex Trading Pattern?
How Do You Trade Pennant Pattern Forex Trading Pattern?
There are two types of forex pennant patterns - bullish pennant chart pattern and bearish pennant chart pattern.
To trade these forex chart patterns a trader requires to learn about the forex technical analysis of bull pennant chart pattern and bear pennant chart pattern.
How Do I Analyze Pennant Pattern Forex 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 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 chart 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. 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 & FX price lows which can be connected by small lines which are parallel, and it looks like a small channel - pennant.
The bull pennant chart pattern occurs at halfway point of a bullish upwards forex trend & after a FX price break out a similar move equal to the height of the pennant pole is expected.
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 heading upwards.
How Do You Trade Pennant Pattern Forex Trading Pattern?
This bear pennant 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 which has a slight upwards tilt. The sell signal is generated when price penetrates the lower line of the inverted bear pennant pattern. The pennant portion of this bear pennant pattern has forex price highs & FX price lows which can be connected by small lines which are parallel, giving the bear pennant chart pattern the look of a small channel - inverted pennant.
Bear Pennant Chart Pattern
The bear pennant pattern above was just a consolidation period for forex market trend prior to more selling & resuming of the downward forex trend. The continuation forex trading 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 forex price moved downwards.
How Do You Interpret Pennant Pattern Forex Trading Pattern?
