How Do I Analyze Pennant Pattern Stock Chart Pattern?

Trading Stocks Read Pennant Pattern Stock Chart Pattern

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

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

Bull Pennant Trading Pattern

Bull pennant pattern forms what looks like a rectangle pattern with a slight downward tilt. The rectangle is formed by 2 parallel lines that act as support level and resistance level for stocks price until the stocks 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 stocks trend. Bull pennant pattern is a continuation chart pattern where the price retraces slightly, bull pennant pattern is therefore a slight stocks price retracement with narrow stocks price action which has a slight downwards 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 stocks price highs and stocks price lows which can be connected by small lines that are parallel, and it looks like a small channel - pennant.

The bull pennant pattern occurs at halfway point of a bullish upward stocks trend and after a stocks price breakout a similar move equal to the height of the pennant pole is expected.

Bull Pennant Pattern - How Do I Analyze a Bull Pennant Chart Pattern

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

Bear Pennant Chart Pattern- Trading Stocks Read Pennant Pattern Stock Chart Pattern

This bear pennant pattern is found in a downward 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 upward tilt. Sell signal is generated when the price penetrates lower line of the inverted bear pennant pattern. The pennant portion of this bear pennant chart pattern has stocks price highs and stocks price lows which can be connected by small lines that are parallel, giving the bear pennant pattern the look of a small channel - inverted pennant.

Bear Pennant Pattern - How Do I Analyze a Bear Pennant Chart Pattern

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

How Do I Analyze Pennant Pattern Stock Chart Pattern